Just like any bill, it is important to pay your contractor and construction bills on time. But unlike most other billing agencies, contractors and other home improvement professionals have the ability to put a “construction lien” on your property if you do not pay. A lien is a legal document filed with your local register of deeds, basically making your debt public record. A lien filed against your property will be held against you if you try to take out a home equity loan, line of credit, or refinance. And before you collect proceeds from the sale of your home someday, the company will have legal rights to that portion of the profits. A “lien waiver” is a document from a contractor, subcontractor, materials man, or other party stating they have received payment and waive any future lien rights to the property. Be sure to ask for a lien waiver once you’ve paid and keep it in the file.