Why You File Mechanics Liens

I know contractors aren’t happy that they have to pay an Attorney collect money they are owed.  And I don’t really blame them, in a perfect world that money should go straight to their bottom line.  But since it isn’t a perfect world, I try to explain to my clients why this remedy is beneficial to them.  A good article on the subject has been written recently by Scott Wolf Jr., “what happens when you file a mechanic’s lien“.  In the article he goes over some of the reasons it’s good to have a Mechanic’s Lien on your side.

Here are three of the reasons he gives in his article:

– “Without a mechanics lien, you can only sue the party you contracted with. With a lien, you can sue the property owner, those up the contracting chain from you, and the surety bonding the project.

– A mechanics lien can prevent a property from being sold, transferred or refinanced.

– Without a mechanics lien, you have no security when you file suit on your breach of contract claim. With a lien, your claim has the property as security.”

I would probably add that a Mechanic’s Lien can survive Bankruptcy in some circumstances.  Since it’s tied to the property, not the person, unlike a lawsuit or judgment.

Comments

  1. Thanks for the mention Kelly. The basic “why” behind mechanic lien laws is often overlooked. Just good to put it in the spot light here and there.

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