What is a Mechanic's Lien?
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A mechanic's lien is a legal process which seeks to guarantee payment for contracted services rendered on an improved piece of property. Depending on the laws of a particular state, contractors, subcontractors and suppliers can file a mechanic's lien within a certain amount of time after the work has been completed and payment has not been received. A mechanic's lien extends to both the structure and the land beneath it. Until the debt is paid, the landowner does not own a clear title.
Originally, a mechanic's lien was almost exclusively sought out by an actual mechanic. If an owner of an automobile contracted for repair services and failed to pay the bill, the mechanic could place a lien on the car's title. This meant filing a claim in a local magistrate's office. In essence, a mechanic's lien meant that the owner of the car must pay off the debt before the title could be transferred cleanly to a third party. If the owner decides to pay the bill voluntarily, the mechanic's lien is lifted.
This practice eventually found its way into the construction world. A property owner might seek out a contractor to construct an apartment complex, for example. A project like this would require licensed subcontractors such as carpenters, masons, general laborers and landscapers. All of these workers would require supplies from outside vendors.
The assumption is that the owner of the property will eventually pay the contractor, who will in turn pay all of the subcontractors, and so on. However, construction projects are often started and finished without such guarantees, which gives the property owner much more leverage over the contractor. If the property owner doesn't feel like paying, it's not as if the workers can just remove the building and sell it elsewhere.
It is this inequality during the contracting and construction phase that makes a mechanic's lien so appealing to contractors and vendors. Instead of finishing a project and hoping the property owner is a scrupulous business person, the very threat of a mechanic's lien can guarantee payment. In fact, many states require that any contractor or vendor must first file a 20 day notice before pursuing an official mechanic's lien. Some property owners may dread receiving this 20 day notice, but the contractor must file it in order to qualify for the actual lien.
A mechanic's lien is not a fast cure for money woes, but it does offer more legal protection than not filing one. Some contractors view a mechanic's lien as a last resort, since they usually want to establish a good working relationship with property owners whenever possible.
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For the painter problem... Wouldn't it have taken him twice as long to finish without the second painter and essentially been the same price? Did you guys decide on an approximate amount of hours beforehand?
- anon30605
On 1/24/09 I took my Jeep in to get a new rear main seal fixed. I think they did a good job. But when (1/31/09) I drove it home I noticed they over filled it with oil. I called him first thing on 2/2 and talked to the Owner Mike - He got upset and told me to bring it in. I took off time from my job and took it to him. Right away he got upset and said I owe him for looking at it. I tried to get him to calm down and talk like Men. He did look at the dip stick and said it's just fine. I pulled it back out and showed him it was over-filled. He just went off on me; calling me *boy* & profanity and other names I can't put down. Then he told me to leave and he wanted his money! As I was pulling off the lot he kept calling me out of my name and hitting the side of my Jeep. I will file a Police Report today; But I don't think it's going to do any good based off of the last two reports!
I went to the Firestone next to my Job and they said I was 1 quart full of oil and I do have a copy of this statement on invoice. I had to pay them to drain it for me. I would like to get a lawyer to look into this, The repair shop had my jeep pike up, for me not paying him $75 and the towing company towed it the wrong way, so now they can keep the jeep. This was done today 3/12/09. What makes it so bad he had an extra key that I didn't give him. I went back to police dept and reported it as stolen. Now can he put a mechanic's lien? Can he tow my car? - helias7
We hired a painter to do a few rooms. He came over, told us the charge was $35/hr. and we agreed to provide the paint, he the other supplies. He showed up w/another worker and they painted the 2 rooms. He then proceeded to try and charge me $70/hr. saying that b/c 2 people came to paint it would be 35/hr each- not at *all* estimated or discussed when he came and gave us the estimate. We tried to work things out w/them, he said to forgo payment as it was their fault but then the office manager refused to try and come to a reasonable agreement (we felt that the $35/hr for work done should be paid since the rooms were painted). After they did not return calls regarding paint on our furniture, baseboards etc. I put a hold on the check (they'd had it for 2 weeks) only wanting to remedy the situation for both parties. Then, I received a notice that a mechanic's lien was placed on our property (w/interest of which there was no paperwork signed or otherwise stating their practice)- they also didn't get my husband's name correct on the lien.
Can a lien be enforced under these circumstances? (Incorrect name listed as property holder- no a misspelling- trying to collect interest when their was no documentation signed or otherwise as to interest charged if payment was received by such and such date etc.)? - gotcover
Regarding Annon17692 and his tile work. We're a small concrete company in CA and the General won't pay us the last $6K of what he owes us. He's used every excuse and stall. I've given him a 20 day Preliminary Notice, and now I'm mailing in a Mechanic's Lien to the LA Recorder. It is the only thing that has helped in the past, especially for us little companies. I don't think they take us seriously. Our dispute is because our insurance lapsed, because of slow paying on their part. But even if it wasn't in force, they still can't get something for nothing. It's not a question of work quality. Anyone have any input on this part of our situation??
- yrdarlin1
Our mom moved out of her house last July 2007 and moved to KY and died in November 2007. Her neighbor replaced a fence between their 2 properties. At mom's funeral he asked if we would go in on the fence. We told him that it was not an appropriate time to be asking and that he could call us and gave him our personal business card. My brother was the executor of the estate and when this man called to ask if we were going to pay 1/2 my brother said no, as we were trying to get the estate in order and the house fixed up in sellable condition. He replaced the fence anyway and when we had an agent at the house yesterday with an inspector he approached her and said that he was going to place a mechanics lien on the house and we would never sell the house. Over $234.00! We are amazed that someone could be such hateful person. We were never consulted in the contracting of the fence, never agreed to anything verbally or in writing. Can he file a lien?
- gr8fl1
I am a tile guy. I did a job for a local custom home builder and he is avoiding me. Its been at least two weeks since I finished the job and have not been paid in full..Every time I call, they either ignore me or tell me they will pay me "tomorrow" Can I place a mechanic lien on his company to get paid?
- anon17691
Okay so to be sure, in order to place or file for a lien on let's say a dirt bike, there has to be some form of contract between the mechanic and owner of the property right? An old friend of mine is going back on a verbal deal we made and charging me an extra 375 dollars that I never agreed to, but there was never any type of estimate given to me previous to him doing the work. He's now threatening to take a lien on my bike because between the time he took my bike and the time he gave me the price after the work, he obtained his license. So my question is can he successfully file for a lien with no type of contract between me and him?
- danimira11
is there a special license to open a lien company in the state of new york? i am interested in opening a lien company and i am trying to find out how i go about doing this.....can someone give me this information?
- anon12887
I hope you can help. I'm STILL waiting for a lawyer to call me back. Here's the deal. I hired a builder to construct my new house. I paid him...we closed on the deal. Since closing, I have now received three Mechanic's Liens on my house because the contractor took the money and ran. We're talking about $40K worth of liens. The builder has also since gone out of business. Any ideas? Am I hopelessly screwed? Please help me.
- bliv711us
What is the situation regarding a lien against work done in a commercial building? We are disputing the bill for the build out.
- peterguitar
I hired a company to install balcony rails... they delivered and installed scratched glass and put holes in my deck that were not supposed to be there. I disputed with them on this and I just received a mechanic's lien on the property. what are my venues of action here?
- lifestyles
I am a Roof consultant based out of Florida, in my job it is my duty to come up with job specs for the customer and I work closely with the contractors and subs to ensure that the job is being done properly. I have rendered my services to a client who is now refusing to pay based on the fact that he didn't use the contractor that I was working with; however I devoted 12 hours to him and I do request payment. My question is am I able to file a mechanics lien or not?
- anon6868
Good afternoon from Abilene, Texas. My shop has performed over 700 dollars worth of approved repair on a vehicle and I can't get them to come pay me and pick up the automobile. I would like to know the steps for filing a lien on this vehicle in order to receive a title. It is a modified Honda Prelude and I am told the engine in it is worth over 8000 dollars. My wife loves the little car, but it just sits there until we can get something done about a title. It has been here over 6 months. Any information to get this ball rolling would be appreciated, thanks, David.
- Cdj1945
Hello, I live in Tulsa, Oklahoma and own a automotive repair shop. I have a problem with a vehicle that was sold more than a 1 1/2 ago. Previously we had a engine replaced and the customer had not paid the repair bill after several month of storage. We applied for a title 42 lien and were cleared to sell the vehicle after paperwork was filled. After selling the vehicle the new owners name were added and paperwork was sent back from Oklahoma dept of Transportation. Here are the problems. The paperwork from Oklahoma took a extremely long time, several months (because the vehicle was from Louisiana?) and when the paperwork did arrive and sent to purchaser, they never filed for a title or claimed they could not for the past year. Now they are taking legal action to get their money back for the vehicle after it was damaged and wrecked. I am not a car dealer nor a wrecker service. My question is after the Title 42 paper work has been submitted and all parties have been informed. Do I have the right to sell a vehicle with only the completed Title 42 paperwork without a Oklahoma Title? Or do I need to waste the extra expense in Titling the vehicle in my companies name even if I never intend to keep the vehicle? Thank you for your advise Robert
- anon4412
We are in a similar situation in that we had a spec house built out of state. The contractor went $11,000 over budget. We maxed out our construction loan, and asked if we could pay the remaining $5500 in monthly payments of $400. The contractor agreed. However, now he wants to put a lien on the house, which we are trying to sell. Will this make it harder to sell the house? Does interest accrue? Does a lien affect our credit?
- tberg
I have been storing a semi-trailer on my property for several months and have not received any storage fees. Is a mechanics lien what I need?
- klf
To Dayton (Editor):
As clarification, the house was sold and closed on two months prior to my finally receiving a statement from the contractor. Although I repeatedly asked him (through certified mail) to send me a bill prior to closing, he never did. Currently, there is no mechanics lien on the property. Can the contractor legally file a mechanics lien now, even though the property has a new owner?
Thank you for your help. - charlotteswe
I owned a house out-of-state, which was being worked on by a contractor. He took an unreasonable amount of time to finish the work. It took him almost two years, when the job only required six months maximum. During this time, he kept telling me "it was almost finished." Although I kept asking him for an estimate and/or statement, he never sent me one.
I recently sold the house, and the new owner recorded the deed. A couple of days ago, I received an exorbitant bill from the contractor. I plan to negotiate the charges on the bill. My question is: Since the house has a new owner and since the contractor never put any lien on it in the past, could he now put a mechanics lien on it to collect from me?
Thank you for your help. - charlotteswe
I had completed a job approx. 8 months ago and because of failure to pay I filed a mechanics lien on the project. The contractor then bonded the lien. I have talked to others pertaining to this situation and found that this is a bad contractor hoping that I will forget and let things go figuring that I will have to spend more money on hiring a lawyer to finsih this out and then it won't be worth it.
Is there anything I can do to get my money or is this the way things go for us sub-contractors in todays world. I have all the necessary paper work showing the my contract was kept on my end but he seems to be getting away with murder. I would really like to bust his chops and at the same time be able to collect my money. It seems like contractors get away without paying all the time in these complex days. Can you help me? - apfsprinkler
I feel like I need to clarify--is it that having a mechanic's lien on your property prevents you from selling it? Or if you do sell it, the first money collected goes to those with the lien? Anyone know?
- Dayton
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