Mechanic's lien
National Real Estate Exam glossary · Financing
Definition
A specific, involuntary lien filed by a contractor, subcontractor, or supplier who has furnished labor or materials to improve real property and has not been paid. Its priority often relates back to the date work began or materials were first furnished, which can place it ahead of later-recorded interests.
Mechanic's lien in plain English
Imagine a contractor builds you a deck but you never pay them. A mechanic's lien is the law's way of letting that unpaid worker or materials supplier put a legal claim on your house until they get their money — the property itself is held hostage for the debt. It's 'involuntary' because you never agreed to it (unlike a mortgage), and it's powerful because its priority can 'relate back' to the day work first started. That means even if someone else recorded a claim on the property later, the unpaid contractor can sometimes jump ahead of them in line to get paid.
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