WHAT IS A MECHANICS LIEN AND WHY IS IT IMPORTANT?
A mechanic's lien is a legal document that contractors, builders, or construction firms can use to guarantee receipt of payment for their work on a project. These liens can also stretch to encompass material suppliers and subcontractors as well as people who are performing repairs on buildings.
This specific type of lien makes sure that the people doing the work are paid before anyone else if there's a situation involving liquidation. You can work with us at Nationwide Notice, Inc. to secure a mechanic's lien and lock in your payment priority in the event of a project claim.
Are Mechanic's Liens Common?
These liens are very common in the industry ‐ in fact, many construction workers won't
sign onto a project without ensuring their legal right to file a mechanic's lien. The lien will
be enforceable during the project's entire scope and through the time when all payment
has been paid out.
Mechanic's liens have been around since Thomas Jefferson enacted them, and they've only become more commonplace from there.
Enforcing a Mechanic's Lien
As mentioned, this type of lien is typically used to handle a situation where there are
unpaid material and labor costs for a construction project. The specific rules and
regulations do change on a state-by-state basis, but the groundwork tends to be very
similar in all parts. If you're trying to enforce a mechanic's lien, be aware that there are
statutes of limitations attached to said liens and knowing the specific state's
requirements is also very important. If you want to make sure that your mechanic's lien
is actionable in court, make sure you're following all the nitty-gritty details so that it's
However, mechanic's liens tend to be handled relatively quickly, especially in a situation where a property is meant to be sold. Any buyer who is attempting to buy a property will discover that there's a lien on the property when they do a title search (which is a common practice before any buying happens). This is because whoever owns the property oversees handling the liens that are connected to the property. Any buyer will want to get rid of a lien as quickly as possible.
Nationwide Notice, Inc.
Having options like a mechanic's lien can help you in the event of non-payment. If you
have a construction company and need help getting your construction payments, that is
where Nationwide Notice, Inc. comes in. We are a full and self-service preliminary notice and
lien service company specializing in assisting construction companies to protect their receivables.
Call us today or reach out to us on our website for help.