Mechanic’s Lien – Definition

Cite this article as:"Mechanic’s Lien – Definition," in The Business Professor, updated October 22, 2019, last accessed August 8, 2020, https://thebusinessprofessor.com/lesson/mechanics-lien-definition/.

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Mechanic’s Lien Definition

A mechanic’s lien is a type of lien that offers protection to builders and contractors that work on a building project or engineers and mechanics that repair structures. This type of lien gives the workers an assurance of receiving payments for the service they have rendered. A mechanic’s lien is not restricted to contractors, builders, and engineers, it is a lien largely enjoyed by vendors of materials or artisans that render specialized services.

A mechanic’s lien guarantees that workers, artisans and material men (suppliers and vendors) receive payment for the work done. A mechanic’s lien is otherwise called artisans’ lien.

A Little More on What is a Mechanic’s Lien

A mechanic’s lien is in favor of laborers or workers who have rendered their services in achieving the repair of equipment or the construction of a facility or building. Vendors or individuals who supplied the materials used for the construction and repair are also offered payment protection through a mechanic’s lien. A mechanic’s lien can be used against real property or personal property in the event that the agent or owner of the property fails to make payment to the workers or artisans.

In a building or construction project, a mechanic’s lien is enforceable throughout the lifecycle of a project.

How a Mechanic’s Lien Can Be Enforced

When laborers are not paid for services rendered or material men not paid for materials supplied, a mechanic’s lien can be enforced. Mechanic’s liens are used in many states and provinces and there are laws and regulations governing how they are used.

Also, when artisans, builders, engineers, and material men want to file a mechanic’s lien, they might pay certain costs. Also, the coverage or protection offered through mechanic’s liens vary and depends on the nature of the job done and the time the project was completed. Individuals who file mechanic’s liens must laos pay attention to who is responsible for making payments as contained in the contract. For instance, the agent of a personal property might not be responsible for repair payments, rather the owner of the property and vice versa.

When parties breach the terms of a contract and refuse to make payments agreed on, a mechanic’s lien can also be used. Before resorting to lawsuits, contractors, engineers, and artisans look for ways to get their payment without taking the case to the court. One major way is to mount pressure on the agent or owner of the property to make payments for the job done.

When mechanic’s liens are exercised on a property, there will be a cloud on the title until the lien is resolved. This means it is impossible to get a buyer for a property that has a defect, otherwise called a lien.

References for “Mechanic’s Lien

https://en.wikipedia.org/wiki/Mechanic%27s_lien

https://www.investopedia.com › Insights › Laws & Regulations

https://realestate.findlaw.com/owning-a-home/understanding-mechanic-s-liens.html

https://www.nolo.com/legal-encyclopedia/what-is-a-mechanics-lien.html

www.businessdictionary.com/definition/mechanic-s-lien.html

https://legal-dictionary.thefreedictionary.com/Mechanic%27s+Lien

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