Mechanic's Lien

Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.

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 ?
If any instrument constituting a valid encumbrance upon such land other than a mechanic's lien is filed for record while the building is being constructed, raised, removed or repaired.
Except for a person who has a contract with an owner or owner-builder or a laborer compensated with wages, a Preliminary Notice is required from those potentially making mechanic's lien and payment bond claims on construction projects.
One troubling aspect of this decision is that the Fourth Circuit may now require that a defendant actually make a mechanic's lien or bond claim before there is any defense to a preference.
Traditionally, eligibility for a mechanic's lien calls for something to be attached/annexed to the real estate (e.
In Kansas, a subcontractor must file its mechanic's lien within three months of the last date it furnished labor, materials or equipment for the project.
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.
On July 1, 2008, plaintiff filed a verified complaint for foreclosure of its mechanic's lien and alleged a breach of contract.
In New Hampshire, contractors and suppliers can obtain security for payment through mechanic's liens and bond claims.
Hutchens, the bank appealed a judgment which had denied its motion for a declaration that a mechanic's lien filed by Hutchens d/b/a Hutchens Mining Co.
In the vast majority of states, the deadline date for filing a mechanic's lien is based on when a supplier or subcontractor last supplied materials, services or labor to a project.
That had the unintended effect of leading some courts to rule that any violation, no matter how minor, barred a contractor from seeking compensation or asserting any mechanic's lien for his work.