Guide · Tennessee
Remodeling in Tennessee: protect your home and your money
Tennessee's rules are simpler than most states', and that works in your favor, but only if you know them. Here's what every Tennessee homeowner should check before signing, before each payment, and at the end of the job.
The short version
- If you live in the home, only the contractor you hired can put a lien on it. So their lien release is the one that matters. A rental is different: see why.
- Your contractor must give you a written lien notice before you sign or work starts.
- On most home jobs over $3,000, a deposit of more than one third of the price is a red flag.
- Jobs of $25,000 or more need a state contractor's license. Check it before you sign.
- At the end, ask for the sworn affidavit that everyone has been paid.
Who can put a lien on your home
A mechanics lien is a claim against your house for unpaid work or materials. It can stop you from selling or refinancing until it's cleared.
In Tennessee, when the home is your main residence (a house, or a building of 2 to 4 units where you live in one), only the contractor you hired directly can file a lien. The lumber yard and the subcontractors your contractor hired can't (Tenn. Code § 66-11-146). That's a real advantage over states like California and Florida, where you can end up paying twice when a contractor doesn't pay a supplier. See how that happens.
It also means the paperwork that protects you is simple: a lien release from your contractor with each payment.
Remodeling a rental or investment property? This protection doesn't apply. Every supplier and sub on the job can lien it, with no warning until after the work is done. How investors protect themselves.
Before you sign: the lien notice and your 3 days
Before making a contract to improve your home, or before starting the work, your contractor must give you a short written notice saying they'll have a lien on your property for the work (Tenn. Code § 66-11-203). Once you receive it, you can reject the contract by registered mail within 3 days (§ 66-11-204).
If you never got this notice, ask for it. A contractor who skips the basics on paper is worth a closer look.
The deposit: one third is the line
On home improvement jobs over $3,000, a contractor can't take a deposit of more than one third of the price at or before signing, unless they furnish a bond for the whole job or you agree in writing to a payment schedule after being told you can hold back payment until the work is done. They also can't take any payment before the contract is signed (Tenn. Code § 62-6-510). These home improvement rules apply in the counties that require a home improvement license.
Whatever the law allows, the safest deposit is a small one. Tie the rest of your payments to finished, inspected work, and keep the final payment big enough (10% or more) to make sure the punch list gets done.
Check the license before you sign
- $25,000 or more: the contractor needs a state contractor's license (Tenn. Code § 62-6-102).
- $3,000 to $25,000: many counties require a home improvement license (§ 62-6-502).
- The building permit must list the contractor's license number (§ 62-6-503). If they suggest you pull the permit as the owner, ask why.
Look them up with our guided Tennessee license check, or go straight to the state's license search and make sure the name matches the business on your contract.
Before each payment, and at the end
- Confirm the work for that payment is done. That's your call.
- Get a signed lien release from your contractor for the payment, before you pay, and a release confirming payment after.
- At final payment, ask for the sworn affidavit and receipt. Tennessee requires your contractor, once the job is done and paid in full, to give you a sworn statement that everyone who worked on or supplied the job has been paid (Tenn. Code § 66-11-205).
- Consider a Notice of Completion. You can record one with the county register of deeds when the job is finished. For homes of 1 to 4 units, it gives anyone with an unrecorded lien claim a short window to act: 10 days (§ 66-11-143).
Have your contract checked against Tennessee's rules
Upload your contract and we'll check the deposit, the license, the lien notice and the payment schedule, and tell you exactly what to ask for. Then we walk you through every payment.
Common questions
Do I need lien releases from suppliers in Tennessee?
Not when you live in the home: only your contractor can file a lien there. On a rental or investment property, collect them from suppliers and subs too.
Is there an official Tennessee lien release form?
No. Unlike California and Florida, Tennessee doesn't set the wording. What matters is that it's signed by your contractor, names your property, and matches the payment.
My contract says the contractor can collect half up front. Is that allowed?
On home improvement jobs over $3,000 it usually isn't, unless they furnish a bond or you agreed in writing after being told you can hold back payment. Ask to lower it, or tie the extra to materials being delivered.
How long can my contractor file a lien?
The notice Tennessee requires says the lien lasts one year after the work is finished. Getting releases as you pay is how you close that door.
General information, not legal advice. Sources: Tennessee Code Annotated §§ 62-6-102, 62-6-502, 62-6-503, 62-6-510, 66-11-143, 66-11-146, 66-11-203, 66-11-204 and 66-11-205. Laws change; check the current code or ask a Tennessee attorney about your situation.
General information about California rules, written by a general contractor. Not legal advice; for advice about your situation, talk to a California attorney.