When businesses don’t get paid for working at someone’s
home, their super power is the mechanic’s lien. Recorded in the county where
the work is done, it attaches to the title of the home. The last thing a
homeowner wants is a cloud on the title. Liens make a home hard to sell, to borrow
money against, or to refinance until the lien is resolved. So, warning the
client of an intent to record a lien usually has the desired effect: the client
pays the bill.
Strong stuff! It’s said that Thomas Jefferson introduced the mechanic’s lien into U.S. legal practice, to encourage construction workers to build in the early days of the country. In those days, construction workers were called mechanics. Today, the instrument is interchangeably referred to as a mechanic’s lien or a construction lien.
Continue reading “How to File a Mechanic’s Lien”
state, contractors who do work on a home can place a mechanic’s lien (construction
lien) on the title if they do not get paid. A mechanic’s lien is a claim
filed for work done, materials supplied, or both. By operation of
state law, this claim becomes a lien against the property’s title.
This is the
contractor’s leverage to get paid. Depending on state law and the contract
provisions between the general contractor and the client,
subcontractors can also file liens. To protect these
companies’ leverage, some states do not allow contractors to give
up this right in exchange for payments, but there are plenty of exceptions in
the state laws, so it’s a common practice for clients to avoid potential
liens through lien
sometimes, mechanic’s liens do take hold. Because these
liens attach to the property, not to the individual who ordered
the work, an unpaid lien will haunt the next person in line to own the home. If
you’d prefer not to live in a haunted house, here’s what you need to know.
Continue reading “Lien In: A Primer on Mechanic’s Liens”
Most real estate owners will, at some point, use a contractor to build or improve upon their property. This is generally a straightforward process wherein the contractor arranges the project according to the terms of the contract, and sees it to completion. The satisfied owner then pays the bill. What happens when the contractor finishes the project, but the customer refuses to pay? That’s where the mechanic’s liens apply.
Continue reading “California Mechanic’s Lien Process”
The complete guide to the mechanic’s lien process.
In general, a lien is a type of property right which
grants a creditor an interest over specific property of the debtor named in the
lien. The lien is used as security for the debt or for performance of some act.
A mechanic’s lien is a security interest in the title to property for the
benefit and protection of those who have supplied labor or materials that
improve the property. Despite its name, mechanics are not the only individuals
entitled to such a lien. Mechanic’s liens are used to ensure payment of debts related
to real property (such as land or real estate) and personal property (such as
an automobile or equipment).
Continue reading “What is a Mechanic’s Lien?”
Mechanic’s liens, sometimes referred to as materialmen’s liens, are legal instruments that encumber title to real property to secure payment from the property owner for the balance owed on an enforceable contract for constructions on or improvements to the property. Arkansas law stipulates that mechanic’s liens have priority over all other encumbrances (except a prior encumbrance given for construction or repair of the improvement) that attach to the real estate (Ark. Code Sec. 18-44-110).
Continue reading “Arkansas Mechanic’s Lien Process”
A lien is a document filed by a claimant in the recorder’s office against a property for recovery of a debt from the property owner for labor or furnishing of materials for the improvement of real property. By filing a lien, as a matter of public record, the claimant (typically a contractor) puts the owner (and anyone who might have a future interest in the property) on notice that he has a claim against the property.
Continue reading “Construction (mechanic’s) liens in Alaska”
liens protect the interests of contractors, subcontractors, material suppliers,
and laborers on construction jobs when work goes unpaid. In Ohio, a mechanic’s
lien is a right provided under the state Constitution. Liens are available
against both private and public jobs in Ohio. Find the mechanic’s lien law in Chapter
1311 of the Ohio Revised Code. Because another goal of the mechanic’s lien
statutes is to protect owners from double payment (to those he or she contracted
with as well as to lower-tiered unpaid contractors or material suppliers), the
law demands strict compliance to secure and enforce a lien.
Continue reading “Mechanic’s Liens in Ohio”
A mechanic’s lien is an encumbrance on a property owner’s real estate title, used to guarantee payment to builders, contractors, and construction businesses which build or repair structures, by using the property where the work was completed as a form of collateral. Eligible parties include the general contractor, subcontractors, laborers, and material or equipment suppliers, as well as by architects, engineers, and surveyors. Material or equipment suppliers must have the materials actually delivered to or used in the project to claim a lien, but if the materials were specially manufactured, the supplier can get a lien even if the materials are not ultimately delivered or incorporated into the project. The lien ensures that the workmen are paid before anyone else if the property subject to the lien is eventually foreclosed upon.
Continue reading “The Mechanic’s Lien Process in Texas”
In Virginia, a lien claimant may make a
claim for a mechanic’s lien by completing and recording a “Memorandum for
Mechanic’s Lien” document. There are separate versions of the Memorandum
depending on whether the claimant is a contractor, subcontractor, or
Continue reading “Making a Mechanic’s Lien Claim in Virginia”