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What is a Mechanics Lien?

Mechanics Lien:
A Mechanics Lien is the legal claim placed on real estate by someone who is owed money for labor, services, or supplies contributed to “real property” for the purpose of improving it.  Typical lien claimants are general contractors, subcontractors, and suppliers of building materials.  A mechanics  lien claimant can sue to have the real estate sold at auction and recover the debt from the proceeds.  Because property with a lien on it cannot be easily sold until the lien is satisfied (paid in full), owners have a great incentive to pay their bills.

Why Should I File a Mechanics Lien?

When you supply labor or materials for a job before you receive payment, you extend credit to your buyer as well as to the project.  It is this credit you have extended to the project that can be secured through a mechanics lien.  If you don’t file a mechanics lien, you are not securing the credit to the project; you are relying on the contractor–who may not pay you.   A properly filed mechanics lien will ensure that your balance will be paid before the owner can sell or otherwise alter the title of the property.

Many states require some form of a preliminary notice before a Mechanics Lien can be filed.  For more information on preliminary notices, please visit our Preliminary Notice page.

Inaction can result in the loss of your money.  Don’t lose your right to file a mechanics lien (or other lien instruments) by waiting any longer.

Submit an online claim form and let one of our lien specialists quickly determine if you should file a mechanics lien, or what alternative steps you should take to protect your receivables or call us (800) 432-7799.