What is a Mechanic's Lien?

A mechanic’s lien is a legal tool used in North Carolina residential real estate law. It is a type of security interest that is taken out on a property when a contractor or supplier provides labor or materials during a construction project but is not paid for those services after the completion of the project. A mechanic’s lien gives contractors and suppliers the right to a claim on the property, meaning that the property owner must pay the contractor or supplier before they can sell the property. If the owner does not pay, the contractor or supplier can sue to force a sale of the property and get paid from the proceeds. A mechanic’s lien must be filed with the county clerk in the area where the property is located. The lien will list the owner of the property, the contractor or supplier who supplied labor or materials, the amount owed, and a description of the property. The lien is then recorded in the clerk’s office so that it is public information. In most cases, the property owner will have to pay the contractor or supplier within a certain time frame or they may risk losing the property. The mechanic’s lien will also make it difficult for the property owner to receive financing or sell the property until the bill is paid.

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What is a Mechanic's Lien?

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