Definition

Noun: A legal claim or security interest against a property, granted to a person or company that has supplied labor or materials for work on that property, to secure payment for that work. It is commonly used in the construction industry.

Usage

A mechanic's lien is a legal tool. It is filed or recorded against the title of a property (like a house, building, or land) by a contractor, subcontractor, or supplier who has not been paid for their work or materials. This lien can prevent the property owner from selling or refinancing the property until the debt is settled.

Examples

• The contractor filed a mechanic's lien on the house after the homeowner refused to pay for the completed roof repair.
• Before purchasing the commercial building, the buyer's lawyer discovered an existing mechanic's lien from an unpaid plumbing subcontractor.
• To secure payment for the lumber supplied, the company placed a mechanic's lien against the construction project.

Advanced Usage

• "To perfect a lien": To complete all the legal steps (such as filing the correct paperwork within a specific time frame) to make the lien enforceable.
  • The subcontractor failed to perfect the mechanic's lien within the 90-day statutory period, so the claim was invalid.
• "Lienholder": The party (e.g., the contractor or supplier) who holds or benefits from the lien.
  • As the lienholder, the electrician had the right to force the sale of the property to recover the debt.

Variants and Related Words

• Construction Lien: A term used interchangeably with "mechanic's lien" in many jurisdictions.
• Materialman's Lien: A specific type of mechanic's lien filed by a supplier of materials.
• Lien (n.): The general legal concept of a charge upon property for the satisfaction of a debt or duty.

Synonyms

• Security interest
• Charge on property
• Encumbrance (specifically a monetary encumbrance)

Related Legal Phrases

• "Foreclose on a lien": To initiate legal proceedings to force the sale of the property to satisfy the debt secured by the lien.
  • After years of non-payment, the contractor was forced to foreclose on the mechanic's lien.
• "Release of lien": A document that removes the lien from the property's title once the debt has been paid.
  • The owner received a release of lien from the contractor after settling the final invoice.

Noun

1. lien to secure payment for work and materials in erecting or repairing a building or other structure