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.

Cross-references

Lien.

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 ?
In the case of a large residential subdivision in Maryland, Fullerton said, no mechanic's lien rights or bond rights mean the sales are unsecured.
This is not the case of a mechanic's lien being enforced against a landlord based on some boilerplate lease provision.
The mechanic's lien holder disputed the foreclosure, arguing that the property could not be foreclosed upon after the original borrower met its debt obligations by giving the lender the deed in lieu.
Contractors and suppliers cannot obtain mechanic's liens on public projects but can assert bond claims on projects in excess of $25,000.
It should be noted here that a mechanic's lien requires that the claimant must have provided materials as well as simply providing labor.
Berger recorded the subject mechanic's lien on May 18, 2018, asserting a "blanket" lien against all the individual units in the project (now owned by third parties), in the total amount of $48,180.
Miller Const Co, Inc v McGinnis, (15) the first district barred a contractor (who failed to provide a written contract and a consumer pamphlet) from recovering under its mechanic's lien. However, the court allowed the contractor the right to recover under a theory of quantum meruit.
Prior to coming to NCS, Jerry was a Corporate Credit Manager in the manufacturing industry for 10 years, during which time he gained very thorough hands-on experience with both UCC filings and Mechanic's Lien filings.
"'At the same time, the statute contains filing and notice requirements to protect the owner and others with an interest in the property.' The mechanic's lien statute is 'designed to ensure that a person searching the land records in a registry of deeds can determine with certainty whether or not title to a particular parcel of land is encumbered by a mechanic's lien.'"
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.
Mechanic's lien: A claim created by low for the purpose of securing priority of payment for work performed and material furnished by o mechanic or other person for the construction or repair of a building; such claim attaches to the land as well as buildings end improvements erected thereon.
So, if the material supplier signs the joint check back to the subcontractor (other party on the joint check), the material supplier has lost its third-party rights, including mechanic's lien rights, for the amount due by the maker of the check as the material supplier is deemed to have been paid.