What is a mechanic's lien?

A mechanic's lien is a legal claim that is placed against a property to secure payment for labor, services, or materials provided during the construction or improvement of that property. This legal action allows contractors, subcontractors, or suppliers to seek compensation when they have not been paid for their work or contributions to a project.

When a mechanic's lien is filed, it creates an encumbrance on the property, which means that it can potentially affect the property owner's ability to sell or refinance the property until the debt is resolved. This tool is essential for protecting contractors’ rights, ensuring they have a legal recourse to recover payment, thereby playing a crucial role in the construction industry.

Understanding mechanic's liens is vital for all parties involved in construction projects to ensure they are aware of their rights and the potential legal avenues available for securing payment.