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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). 


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