A mechanic’s lien, also known as a construction lien or contractor's lien, is a legal claim against a property by a contractor, subcontractor, or supplier who has provided labor, services, or materials for a construction or improvement project. The purpose of a mechanics lien is to ensure that those who contribute to the value of a property are compensated for their work.
If you are a contractor who is having difficulty obtaining payment for a project, a Broward County business attorney may be able to help.
Mechanic liens provide several benefits for construction professionals. They create a secured interest in the property where the work was performed and/or supplies delivered, meaning that the property itself serves as collateral for the unpaid debt.
Mechanics liens can also elevate the priority of payment for contractors and suppliers. In the event of the property owner's bankruptcy or foreclosure, a properly filed mechanics lien can give the lienholder priority over other creditors.
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