Can a contractor impose a mechanic's lien on a homeowner's property if the homeowner never signed a contract but knew of the work being done?

A mechanic's lien is a legal claim against a property that allows contractors, subcontractors, and suppliers to ensure payment for their work. In South Dakota, as in many states, the creation of a mechanic's lien does not solely depend on a signed written contract. If a homeowner is aware of the work being carried out and does not object to it, this can imply consent to the work and the obligation to pay for it.

When a homeowner knows about the work being performed, their lack of objection can be interpreted as acceptance of the arrangement, even in the absence of a formal contract. This notion is rooted in the principle of unjust enrichment, which prevents homeowners from benefiting from improvements made to their property without compensating those who provided the work.

Thus, the contractor's ability to impose a mechanic's lien hinges not only on a signed contract but also on the homeowner's knowledge and lack of objection to the work. This option accurately reflects the implications of a homeowner's awareness and tacit approval of the work performed.