A mechanics lien is a legal claim filed by contractors, subcontractors, or suppliers to secure payment for their work.
To file a lien, the claimant must notify the client within 20-30 days of the contribution, file a “claim of mechanics lien” in the property’s county, and potentially file a lawsuit if the dispute isn’t resolved within 2-6 months.
Unresolved liens can hinder property sales, so clearing them through a court order is essential.
To avoid mechanics liens, investors should ensure all subcontractors and suppliers are paid directly and require lien waivers, protecting themselves from payment disputes.