Real Estate Law · Haute Lawyer Network
What Is a Mechanic’s Lien?
Last reviewed: June 2026
A mechanic’s lien — also called a construction lien or contractor’s lien — is a security interest in a property given to contractors, subcontractors, laborers, and material suppliers who improve the property but are not paid for their work or materials. The lien gives them the right to force a sale of the property to satisfy the unpaid debt if the owner does not pay.
Mechanic’s lien laws vary significantly by state but share common elements: the claimant must perform work or supply materials that improve the property, the claimant must comply with strict notice and recording requirements and deadlines, the lien must be filed within a specified period after completion of work or last furnishing of materials, and the lien must be enforced (through a lawsuit to foreclose the lien) within a specified period or it expires.
Frequently Asked Questions
What is a preliminary notice?
A notice required by many states to be served on the property owner (and sometimes the lender) at the start of a project. Failure to serve a preliminary notice can forfeit lien rights regardless of whether payment is actually made.
What should a property owner do when a mechanic's lien is filed?
Verify whether the claimed amount is owed, consult with a real estate attorney about the lien's validity, and determine whether to pay the amount, dispute the lien, or bond over the lien with a surety bond substituting the bond for the property.
What is bonding off a lien?
Substituting a surety bond for the lien on the property — releasing the lien from the property while the dispute over payment is resolved. The bond guarantees payment of any valid lien amount.
Can a homeowner's general contractor fail to pay subcontractors even after the homeowner paid the contractor?
Yes, unfortunately. This is the principal risk mechanics lien laws address. Homeowners can protect themselves through joint check agreements (requiring the owner's and contractor's joint endorsement on checks), conditional lien waivers, and lien releases as work progresses.
How does a mechanic's lien affect a property sale?
A mechanic's lien must be resolved before a clear title can be issued — it will be discovered in the title search and will prevent closing until resolved by payment, release, or bonding.
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