⚖️ Mechanics Lien

What is a Mechanics Lien?

A Mechanics Lien (also called a "Construction Lien" or "Contractor's Lien") is a legal claim against a property for unpaid construction work, materials, or services. It creates a security interest in the property title, making it difficult for the owner to sell or refinance until the debt is paid.

Why It's Powerful

• Secures your debt: Attaches to the property itself, not just the owner's bank account
• Priority position: Often takes priority over other debts and mortgages
• Forces payment: Property owners can't sell or refinance with a lien on the title
• Legal leverage: Often prompts payment without going to court

Who Can File

• General contractors
• Subcontractors
• Material suppliers
• Equipment rental companies
• Laborers
• Design professionals (architects, engineers in some states)

When to File

Deadlines vary dramatically by state:

• 30-90 days after last furnishing labor/materials (most common)
• Within X days of project completion (some states)
• Before specific events — like owner occupancy or final inspection

Filing Process

1. Prepare the lien document — must include specific information by state law
2. File with the county recorder — where the property is located
3. Pay filing fees — varies by county ($25-$100+)
4. Serve notice — most states require notifying the property owner
5. Record proof of service — document that notice was given

After Filing

• Foreclosure deadline: You must file a lawsuit to foreclose on the lien within a specific timeframe (6 months to 2 years, depending on state)
• Settlement negotiations: Many liens are resolved without going to court
• Lien release: Once paid, you must file a release of lien