Whether you're a property owner, contractor, or supplier, protect your interests in the construction sector by using a Mechanic's Lien. Get payment for labor and materials and safeguard your rights.
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Last Update August 29th, 2024
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Table of Contents:A Mechanic's Lien is a legal claim by contractors, subcontractors, and suppliers against a property they've worked on, but weren't paid for their labor, services, or materials.
This legal document gives the unpaid party a financial interest in the property equal to the debt owed.
Placing a lien on a property makes it hard for the owner to sell or refinance until they clear the debt, encouraging them to settle the amount owed.
Mechanic's liens differ by filer and unpaid service or material. Types include:
Construction liens: Filed by general contractors, subcontractors, and laborers for construction-related activities. Supplier's liens: For those who provide materials but haven't received payment. Design professional's liens: Can be used by architects and engineers.
The right to file a Mechanic's Lien is usually given to those who work on a construction project and are not paid.
| Role | Description |
|---|---|
| General Contractors | Oversee construction projects. |
| Subcontractors | Hired for specific tasks in larger projects. |
| Suppliers | Provide materials, can file liens if unpaid. |
| Laborers | Can file liens for unpaid wages. |
| Design Professionals | May have lien rights for preparatory work in some states. |
Mechanic's liens are particularly useful in several situations:
| Reason | Description |
|---|---|
| Unpaid Work | For unpaid work or materials provided. |
| Legal Leverage | Complicates property transactions until debt is settled. |
| State Requirements Compliance | Necessary preliminary notices to preempt debt settlement. |
