What is the Effect of a Mechanic’s Lien

Gavel, orangeA mechanic’s lien has an immediate effect when filed: it encumbers the owner’s real property indefinitely and for the entire amount of the lien claimed. The property owner can then file formal papers to dispute the lien or post bond to have it discharged while the lien action is litigated, but that requires immediate conduct on the part of the property owner, which gets his attention and can set the stage for prompt settlement.

The lien is visible on the docket to anyone (including those looking to purchase the property) and it must be satisfied if and when the property is sold; however, it is “inchoate” in nature and not a money judgment, meaning, it does not entitle the lien holder to an award for money.  For that, one must file separate a lawsuit for money damage. Still, the filing of a mechanic’s lien is one of the most efficient ways to get a case resolved, unless there are significant defenses.

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Mechanic’s Liens

Mechanic’s Liens

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