Mechanic's Lien

A mechanic's lien is a legal right that was put in place to protect contractors, material suppliers and laborers. This right allows them to secure a debt owed to them. In other words, if a customer does not pay, they have the right to place a lien on the property in order to collect their funds.

Until the debt is finalized and paid, the owner of the property does not have a title that is free and clear.

Origination of a Mechanic's Lien

At first, a mechanic’s lien was just that, a mechanic was allowed to place a lien on the car after work was done and the bill was not paid. In this industry, that happened quite often.
Since then, the construction field has adopted the mechanic’s lien due to problems associated with payment in their field. With a car, to pay the money owed it can be taken and sold just about anywhere. Unfortunately, you cannot pick up a home or businesses building and sell it anywhere.

The introduction of a mechanics lien in the construction field has been insurance for many contracts that might have not otherwise been paid.