What is a Mechanics Lien?

A mechanics lien is a legal claim that a contractor, subcontractor, or another supplier of labor or materials can make against real estate property. It is a powerful tool for those who are owed money for the work they have done on the property. As a home buyer, it is important to know what a mechanics lien is and how it can affect your purchase. Let's take a closer look at mechanics liens and how you can protect yourself when buying real estate. 

What Does A Mechanics Lien Do? 

A mechanics lien gives contractors, subcontractors, and suppliers of labor or materials the legal right to place an encumbrance (i.e., a hold) on real estate until they receive payment for their work. In other words, if someone places a mechanics lien on your property, they are essentially saying "I will not release this property until I get paid." This can cause significant delays in closing the sale of the property as any existing liens must be addressed before the sale can be completed. 

How Can I Protect Myself From Unpaid Liens? 

The best way to protect yourself from unpaid liens is to do your due diligence when buying real estate. Make sure that you request copies of all contracts and invoices related to any recent work done on the property and check that all payments have been made in full before putting in an offer to purchase the property. Fleet Title can assist you with this- especially because our experienced attorneys have taken part in real estate closings for nearly 25 years! by checking We will do the research for you and check court records to ensure that there are no existing liens against the property prior to making an offer. 

Mechanics liens are one of those things that many home buyers overlook when purchasing real estate but understanding what they are—and how they may affect your purchase—is key to protecting yourself from unwanted surprises down the line. By doing thorough research prior to making an offer on a piece of real estate you can reduce your risk of running into issues with unpaid liens or other problems associated with past work done on the property. Let Fleet Title mitigate any potential risks associated with mechanics liens and buy your dream home with confidence!