Construction Lien

A construction lien, also known as a mechanic's lien, is a legal claim filed against a property by contractors, subcontractors, or suppliers who have not been paid for work or materials provided for a construction project. This lien gives them a right to seek payment from the property owner before the property can be sold or refinanced. Essentially, it ensures that those who contribute to a property’s construction or improvement are compensated, protecting their financial interests in the project. If not resolved, it can lead to legal action and potentially force a sale of the property to settle the debt.