A mechanic's lien is a statutory legal claim that a contractor, subcontractor, or supplier can file against a property they have improved when payment is not received under the terms of their contract. The lien attaches to the property's title and can prevent sale or refinancing until resolved. In most jurisdictions, an unresolved lien can ultimately lead to a forced sale of the property to satisfy the debt.
Lien rights and procedures vary significantly by state. Most states require a preliminary notice (often called a Notice to Owner or NTO) within a specific window of starting work, followed by a notice of intent to lien before the actual filing, and then the lien itself within another deadline. Missing any of these deadlines can extinguish the lien rights entirely. Lien waivers (signed in exchange for payment) are the standard mechanism for clearing lien rights as a project progresses.