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What is a Mechanics’ Lien on property?

January 1, 2021

Man 5710164 1920

A Mechanics’ Lien is a lien (or encumbrance) on real estate held by a person for labor, service or materials furnished in connection with the construction or improvement of real estate. The claim will allow for interest or right to property, or a portion of it, by the lien holder that arises by law or agreement until payment of a debt or liability is satisfied.  This type of lien is typically codified by a statute of the state which governs the creation, extent, filing, and foreclosure of the lien. The time limitations for filing of the lien and foreclosure of it are set by statute.

In many cases, a lien on property must be removed before the sale of the property may commence.

For most states, the lien must be verified or sworn under oath and must include the names and addresses of the lien claimant, the owner of the real estate, and/or their agent, the street address and legal description of the real estate subject to the lien, the amount due or claimed, including an itemized list of labor or materials furnished, the nature of the work performed, and when the work began and ended. The time for filing of the lien determines its priority with respect to other liens on the real estate.  Please see specific state for details and/or differences.

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