A legal claim against property by a contractor or supplier for unpaid work or materials.
Definition
A mechanic's lien is a security interest granted to contractors, subcontractors, or suppliers who have provided labor or materials for the improvement of real property but have not been paid. It allows them to seek repayment by filing a lien against the property involved.
Why It Matters
Mechanic's liens appear in property records and are critical for researchers to assess potential encumbrances or disputes affecting real estate ownership and value, especially in due diligence or asset investigation.