What is a mechanic’s lien?

Jul 14, 2021

Kiritsis Law Group 212 922 0005

By: John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

Generally, it refers to the rights of unpaid laborers contracts and suppliers to file a lien against a property to recover the value of their work.   Jurisdictions permit mechanic liens to promote the public policy of benefiting those supplying services and materials to improve property by affording them an opportunity to place a security interest in the property’s title. A lien by a car mechanic on a vehicle may often be called as an artisan’s lien rather than a mechanic’s lien, because in many jurisdictions a mechanic’s lien can only be attached against a real property. A common exception to a state’s mechanic’s lien laws may exempt real property owned by the government from being subjected to private party claims. A mechanic’s lien could depending on the jurisdiction, get higher priority than a mortgage lender’s real property security interest. In many jurisdictions, a mechanic’s lien can only be enforced through a judicial foreclosure sale. An owner maybe allowed depending on the jurisdiction, to demand a lien release or cancellation of lien before giving payment to a contractor. 

 

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