Understanding Mechanic’s Liens

When construction or improvements are done on a property, sometimes things do not go according to plan.  When problems arise and contracted payments are not made, the situation can result in a mechanic’s lien being filed.

What is a Mechanic’s Lien?Mechanic's liens

A mechanic’s lien is a “claim” against your property, similar to a mortgage, filed by someone who has done construction or home improvement work on your property such as a contractor, subcontractor, laborer or material supplier.  When the contractor or laborer has not been paid, they can record a lien with the county recorder’s office in order to ensure a payment.

How a Homeowner is Affected by a Mechanic’s Lien

The homeowner is the person who is ultimately legally responsible for payment of the lien, even if they have already paid the contractor.  Problems that can arise include:

  • Not paying the lien can result in foreclosure on the property
  • The lien gets recorded on the property’s title, which can affect the ability to borrow against it or sell it
  • The homeowner may end up paying twice for the same work

How Mechanic’s Liens Work for a Contractor or Supplier

A mechanic’s lien is a very powerful tool that allows for the ability to receive payment for the goods or services provided by a contractor, subcontractor or supplier.  If the agreed-upon work has been completed but payment has not been made, a mechanic’s lien can provide a solution.  When Churchill, Quinn, Richtman & Hamilton helps you file the lien, it can benefit you as a contractor/supplier by giving you the ability to legally collect the debt.

  • It will prevent the property from being sold, refinanced or transferred
  • It can put pressure on lenders and property owners to address the debt
  • It can give the debt first priority over other debt

The attorneys at Churchill, Quinn, Richtman & Hamilton are well-versed in the enforcement of mechanic’s liens.  Contact us at 847-223-1500 or visit grayslakelaw.com to learn how we can help you navigate the complexities of this law.

Referenced articles can be read HERE and HERE