Mechanic's Lien

A mechanic’s lien gives a craftsman, laborer, supplier, architect or other person who has made improvements or delivered materials to a specific piece of real estate the right to place a lien on that real property for the cost of services and material if not paid.  It requires numerous technical laws such as prompt written notice to the owner of the property and the remaining amount due even if the general contractor has not been delinquent in making payments. Limits on the amount collectable apply in some states as well as numerous time constraints to implement the lien. In some cases, the lien is replaced by another security called a bond. To accomplish a last resort enforcement of a mechanic’s lien, a lawsuit to foreclose the lien must be filed and the property must be sold in order to be paid. In the state of Texas, mechanic’s liens are formed both by the statue and by the Texas Constitution.