What is a Mechanic’s Lien

For anyone involved in the construction industry, it is important to know about mechanic’s liens. According to wikipedia’s definition, a mechanic’s lien is a security interest in the title to a property for the benefit of those who have supplied labor or materials that improve the property. When talking about real property, it is called by various names, including, generically, construction lien. It is also called a materialman’s lien or supplier’s lien when referring to those supplying materials, a laborer’s lien when referring to those supplying labor, and a design professional’s lien when referring to architects or designers who contribute to a work of improvement.

Due to the economics of the construction business, legislation has been passed in almost every state that contractors and subcontractors need a greater remedy for non-payment for their work than merely the right to sue on their contracts. In particular, without the mechanic’s lien, subcontractors providing either labor or materials may have no effective remedy if their general contractor isn’t sufficiently financially responsible because their only contractual right is with that general contractor.

At Corporate Collections and Corporate Lien Services, we have extensive experience with filing and perfecting liens. We also counsel our clients to take a proactive approach to protecting their rights by using preliminary liens. For a free consultation, call us at (888) 345-2500.

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