Construction Lien - Explained
What is a Construction Lien?
Written by Jason Gordon
Updated at September 26th, 2021
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
Table of Contents
What is a Construction Lien?What are the Rules for Construction Liens?Academic ResearchWhat 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