Construction Lien - Definition
Written by Jason Gordon
Updated at December 5th, 2020
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What is a Construction Lien?
A construction lien is a type of lien that protects builders, vendors, suppliers, contractors and other professionals from the risk of not being paid for their labor and materials supplied for a construction project. The professional may file a lien against the subject property (real estate) where the work was rendered. This has the effect of clouding title to the property.
Back To: COMMERCIAL LAW: CONTRACTS, PAYMENTS, SECURITY INTERESTS, & BANKRUPTCY
What are the Rules for Construction Liens?
Different states treat construction liens in various ways, there are specific agencies or jurisdictions that handle the filing of a construction lien. Generally, hen filing a construction lien, the contract that states the type of construction and the job needed to be done must be attached. When filing a lien, the owner of the property is entitled to a copy of lien either before or after the lien is filed (depending upon the jurisdictional rules).