In the construction industry, one of the most effective ways to protect your right to payment is by securing your receivables through lien rights. When properly exercised, lien rights give you more than just a legal claim—they give you a direct interest in the property where your labor or materials were used. In simple terms, the property becomes your collateral.

Filing a lien on a construction project attaches your claim to the underlying real estate, creating a legal security interest. This means that if the property owner or contractor fails to pay you, you are not just another unpaid vendor. You now hold a claim against the property itself. In theory, you own a portion of the property equal to the amount you're owed. This added level of security gives you leverage that few other remedies can provide.

If payment is still not made after a lien is filed, you have the legal right to take the next step: foreclosure. Similar to how a bank forecloses on a property for an unpaid mortgage, you can initiate legal proceedings to force the sale of the property. Through this process, you can request that the sheriff sell the property and use the proceeds to satisfy your debt. While foreclosure is often a last resort, the very possibility of it creates significant pressure on those holding the funds to resolve the payment issue quickly.

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