A Contractor’s Toolbox: The Basics of a Mechanic’s Lien.

It is important to remember two things if you are a contractor and your customer did not pay you.  You need to act quickly.  And a Mechanic’s lien is one of the most important tools a contractor can use to get a homeowner to pay for their work.

First, if a customer is refusing to pay you for the work you did it is important to act quickly.  Most states give you less than a year to file a mechanics lien.  And in that time period you have to send a “notice” to the owner of the property you did work on.  In most states you can only file a mechanic’s lien after you meet the notice requirement.

Second, you can use a mechanic’s lien as a tool to get paid.  For example, most potential homebuyers will not buy a home with a mechanic’s lien on it.  A mechanic’s lien can be used to force a customer to pay you.  Because if you have a valid mechanic’s lien on a property you can use it to foreclose on that property.   A homeowner must pay a contractor with a valid mechanic’s lien on their property or risk loosing their home.

If you are a contractor and you need to file a mechanic’s lien it is important to contact an attorney immediately.  An attorney will be able to walk you through the process of filing a mechanic’s lien.  And make sure you get paid.