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A Mechanic's Lien is also known as a Construction Lien or a Supplier's Lien.

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Sample Mechanic's Lien

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What is a mechanics lien form?

A Mechanic's Lien is a document is used by a company that has supplied labor or materials to a property to create a security interest in the property. This means that a property can’t be sold, transferred, or refinanced until your loan is resolved.  This ensures that the business receives payment for their labor and materials. This document is also known as a Construction Lien, Laborer’s Lien, Artisan’s Lien, Materialmen's Lien, or Supplier's Lien.

To obtain a Mechanic's Lien, you need to provide information about the parties involved and the services or materials supplied.  The business that is claiming the secured interest will need to provide their information, such as name, address, and license number and list the state and county that the lien is created in. The business will also need to describe the services or materials rendered.  Providing this information and filing it with the appropriate recorder's office will ensure that the business is covered for all their labor and supplies in the event of non-payment.

 

When do you need a mechanics lien?

To qualify for a lien, you must have provided goods or services for the construction or improvement of real property.  This work must be unpaid.

Different states have different rules about what constitutes work that qualifies for a mechanic’s lien.  Generally, you will qualify for a lien if you have provided:

  • Materials, such as building materials, plumbing equipment, electrical components
  • Labor, such as carpenters, plumbers, electricians, laborers, contractors
  • Designers, such as engineers and architects
  • Builders of specialty items that are later installed or incorporated into a property

Components of a mechanics lien

Involved Parties

The names and addresses, as well as contact information, of the lienor (the person or entity claiming the lien), the lienor's attorney, and the owner of the property against which the lien is being claimed.

Details of Labor/Materials

In this section, provide all details of the contract. This includes descriptions of the actual labor performed, details of payment, and the dates between which services were rendered.

Description of Property in Question

This should be as detailed as possible. Include the address of the property and construction specs like size and material. If the property in question is a vehicle, you should provide the color, make, model, year and license plate number.

Details of Location

Provide the address at which the contractor performed the services. You should also include the type of building the site is, such as "industrial lot" or "private residence."

Signatures

As with any legal form, the form is not legal until it has been signed by all involved parties. The signing process must take place in the presence of a notary public, who should also sign and date the document.

State Resources

Each state has its own mechanic’s lien laws and separate requirements about what should be done to “perfect” your lien.  Generally perfecting a lien requires:

  1. Providing notice to the property owner about the amount due.  This notice should include detail about the work that was performed, the materials that were supplied, and the dates that the work started and was completed.  Usually required to be sent via certified mail.
  2. Providing notice about the start of work on a property or a public notice of intention to file a lien if not paid.  This might be referred to as a Notice of Commencement, a notice of Project Commencement, or Affidavit of Commencement.  Usually required to be set via certified mail.
  3. Public notice of intention to file a lien.
  4. Notice of the lien to be filed in a public records office/with the county recorder.
  5. Filing a suit to foreclose upon the lien within a specific period of time.  Some states refer to this as a Lien Affidavit. In some states, the suit must be served on the owner with proof of service and instructions regarding the owner’s rights under the Residence Lien Restriction and Lien Recovery Fund Act.  The lien holder must also provide an affidavit that explains the homeowner’s rights under the Act.

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