Legal

Mechanic's Lien

A legal claim against a property by a contractor, subcontractor, or supplier who has not been paid for work.

A mechanic's lien gives an unpaid contractor or supplier a security interest in the property they worked on. Filing deadlines and procedures vary by state but are typically tight (30–120 days from last work). A perfected lien must be addressed before the property can be sold or refinanced. Mechanics liens are one of the strongest collection tools available to contractors.