Mechanic's Lien

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Mechanic's Lien

A charge or claim upon the property of another individual as security for a debt that is created in order to obtain priority of payment of the price or value of work that is performed and materials that are provided in the erection or repair of a building or other structure.



mechanic's lien

n. the right of a craftsman, laborer, supplier, architect or other person who has worked upon improvements or delivered materials to a particular parcel of real estate (either as an employee of the owner or as a sub-contractor to a general contractor) to place a lien on that real property for the value of the services and/or materials if not paid. Numerous other technical laws surround mechanic's liens, including requirements of prompt written notice to the owner of the property and the amount still owed (even before the general contractor has been tardy in making payment), limits on the amount collectable in some states, and various time limitations to enforce the lien. Ultimate, last resort enforcement of the mechanic's lien is accomplished by filing a lawsuit to foreclose the lien and have the property sold in order to be paid. Property owners should make sure that their general contractors pay their employees or sub-contractors to avoid a mechanic's lien, since the owner could be forced to pay the debts of a general contractor even though the owner has already paid the contractor. If the worker or supplier does not sue to enforce the mechanic's lien, he/she may still sue for the debt. (See: lien)

References in periodicals archive ?
Of significance, the deed in lieu of foreclosure did not extinguish, or eliminate, the mechanic's lien.
In New Hampshire, contractors and suppliers can obtain security for payment through mechanic's liens and bond claims.
The mechanic's lien is a significant tool that we can use to recover workers' rightful pay because it puts a hold on the property in the amount owed to the workers," said Labor Commissioner Su.
Defendants paid plaintiff the sum of $1,234,544 leaving an outstanding balance of $104,498, which formed the basis of plaintiff's mechanic's lien.
A mechanic's lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.
These include, for example, junior lenders, judgment creditors and holders of mechanic's liens.
He has represented clients in complex construction cases involving project delays, disruptions, and inefficiencies, and is experienced in prosecuting and defending mechanic's liens, bond claims, and payment claims.
Likewise, in Roberts v Adkins, the court determined that "when a contract does not comply with the Act, it is invalid and cannot form the basis of a breach of contract action or an action to foreclose a mechanic's lien.
What Construction Lawyers Need to Know About the Interaction Between Bankruptcy Laws and Mechanics Lien Laws in 2011 is a time efficient way to be in-the-know on the complex relationship between state mechanic's lien law and federal bankruptcy law and how the two will interact in the upcoming year.
On February 28, 2008, the plaintiff recorded an original contractor's claim for a mechanic's lien, claiming that the date the plaintiff last performed work was November 30, 2007.
The laws governing mechanics' liens and the use of bonds to protect against lien enforcement vary from state to state, but in almost all states, the standard solution when a mechanic's lien has been filed is to cancel the lien by filing a bond.