Mechanic’s lien
In the United States, a mechanic’s lien is a legal guarantee that ensures payment for labour or materials that have been supplied to improve property. Originally developed in relation to motor vehicles, mechanics were allowed to place a lien on the vehicles title if they were not paid for repair works.
However, the use of liens has subsequently widened and they are now sometimes referred to as construction liens, property liens, materialman's liens, supplier's liens and so on, and they are filed when payment has not been received for work done or goods or services provided.
In relation to property, liens appear in public property records and ‘travel with the land’, meaning that when property is bought and sold the lien is still attached to the land. This can make it difficult for property owners to complete a sale, if money is still owed to a contractor, and banks and lenders may be unwilling to refinance or lend against properties with liens attached. This can give property owners the incentive to have the issue settled and the lien removed.
Subcontractors and suppliers can also use liens as leverage to obtain payment from contractors. This can help, for example, in the event of the contractor going into liquidation.
The rules applying to costs that can be included in a lien vary from state to state, but generally, only costs relating to labour, goods and services that have improved the property are accepted. It is not usually possible for legal fees, punitive or qualitative damages to be included in the lien as these are not classed as having improved the property.
The claimant must file a court action to enforce the lien within an specified period of time, otherwise it becomes invalid. A Release of Lien can be sought from the lien holder if they have not brought an action, since this still has the potential of hindering the passing on of the property to a new owner.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.