A guarantee of payment to builders, contracters and construction firms that build or repair structures. Mechanic's liens also extend to suppliers of materials and subcontractors and cover building repairs as well. The lien ensures that the workmen are paid before anyone else in the event of liquidation.
A mechanic's lien is also known as "artisans' liens" or "materialmen's liens" .
Mechanic's liens are often necessary to secure construction help on a project. The lien stays in force until the project is finished and all constuction personnel have been paid.
From an investment standpoint, it is important to note that mechanic's liens generally have a higher priority than other forms of debt. This priority determines the hierarchy of claims in the event of foreclosure or repossession. Interestingly, mechanics liens were not named after automobile mechanics seeking payment for repair services. Instead, the term traces its roots back to the 18th century, when laborers were often referred to as "mechanics."
Investment dictionary. Academic. 2012.
Look at other dictionaries:
mechanic's lien — see lien Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. mechanic s lien … Law dictionary
mechanic's lien — A claim, created by state law, granted to suppliers of labor and/or material to building projects, to secure priority of payment of the price of work performed or materials supplied in erecting, constructing, altering, or repairing a building or… … Glossary of Bankruptcy
mechanic's lien — ☆ mechanic s lien n. a lien on a building or other property given by statute to those who perform work or furnish materials in the improvement of that property … English World dictionary
mechanic’s lien — A claim, created by state law, granted to suppliers of labor and/or material to building projects, to secure priority of payment of the price of work performed or materials supplied in erecting, constructing, altering, or repairing a building or… … Glossary of Bankruptcy
Mechanic's lien — A mechanic s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien exists for both real property and personal property. In the realm of real property … Wikipedia
mechanic's lien — noun lien to secure payment for work and materials in erecting or repairing a building or other structure • Hypernyms: ↑lien • Hyponyms: ↑garageman s lien * * * noun : a lien against a building and its site to assure payment for construction work … Useful english dictionary
mechanic's lien — A lien against real property created under state laws that give a person who makes repairs or improvements to real estate the right to place a lien against the property if that person is not paid. American Banker Glossary … Financial and business terms
mechanic's lien — A claim created by state statutes for the purpose of securing priority of payment of the price or value of work performed and materials furnished in erecting, improving, or repairing a building or other structure, and as such attaches to the land … Black's law dictionary
mechanic's lien — a lien secured on property, as an automobile, building, or the like, by the contractor who has repaired or built it, in order to ensure payment for labor and materials. * * * … Universalium
mechanic’s lien — /mɪˌkænɪks li:ən/ noun US a lien on buildings or other property which can be enforced by workmen until they have been paid … Dictionary of banking and finance