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Construction Lien - Explained

What is a Construction Lien?

Written by Jason Gordon

Updated at September 26th, 2021

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Table of Contents

What is a Construction Lien?What are the Rules for Construction Liens?Academic Research

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). 

Related Topics

  • What is Priority of a security interest?
  • What role does perfection play in establishing the Priority of a secured party?
  • What are the common conflicts arising as to priority of a security interest?
  • What is the priority of parties secured by common law and statutory liens?
  • Lien - Definition
  • Blanket Lien Definition
  • Unperfected Lien
  • Possessory Lien 
  • Non-Possessory Lien 
  • Tax Lien
  • Mechanics Lien Definition
  • Construction Lien
  • Cloud on Title
  • Priority of a buyer of collateral that is subject to a security interest

Academic Research on Construction Lien



construction lien

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