What is the purpose of a mechanic’s lien? (Illustrated)

Mechanics liens are documents that can ensure that you will eventually get paid for the services and materials you have rendered on a home. They are used in the even that a client does not pay for the services that they received. So what exactly is a mechanics lien and how do the work? Let's take a look at this infographic. 

What is the purpose of a mechanics lien?

It’s simple a mechanics lien is typically filed by subcontractors, laborers, suppliers or contractors who have not been paid for their services or materials. They can be filed for essentially any unpad material or services that have been rendered. The lien will go against the house or vehicle. If the owner of said property wants to sell the property in the future, the lien must be paid off. 

How do mechanics liens work?

Step one for the claimant is to give the owner 20-30 days of notice that a lien will be filed against their property. If the claimant is not paid within that time frame then the next step is to file a mechanics lien in the county where the property is located. Finally the claimant has a specified time frame to work out a solution with the property owner, or file a lawsuit. 

How do you avoid a mechanics lien?

Simply put, by paying your bill. But you can also put a lien waiver in the contract. 

What can be included in the total of the lien?

The lien can include the cost of labor, materials and services rendered on the property. However, the lien can not include attorney fees, property damage, emotional distress or other qualitative damages.  

A mechanics lien is a document that ensures payment for services and materials on a property. It's filed by those unpaid, goes against the property, and must be paid off when selling it. To use one, give the owner notice, file the lien, then negotiate or sue if unpaid. Avoid it by paying bills or using lien waivers. The lien covers labor and material costs but not attorney fees or other damages. It's a last resort for payment protection.

Mechanics liens are a last line of defense to ensure that you are able to be paid for the material and services you have rendered This infographic was produced by RODA Marketing. 

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