Mechanic’s Liens

A mechanic's lien (or a materialsmen lien) is a security interest in the title to property for the benefit of a person who has expended services, labor or materials to improve personal or real property. A mechanic's lien arises by statute in 34 states. A mechanic's lien is used to protect contractors. Mechanic's lien law creates a structured process for the prioritization and repayment of claims. Property that has a lien imposed upon it cannot be borrowed against, refinanced, or sold until the lien is satisfied. Thus, the property owner has a greater incentive to satisfy the debt. Read more