Glossary

Mechanic's Lien

Also known as: Materialman's Lien, Construction Lien

A statutory lien available to contractors, subcontractors, and material suppliers who have not been paid for labor or materials furnished to improve real property, secured directly against that property.

Mechanic's lien statutes vary significantly by state in their notice requirements, filing deadlines, and priority rules, but they share the same core purpose: giving unpaid participants in a construction project a direct remedy against the improved real estate itself, rather than leaving them to pursue only the party that hired them. In many jurisdictions, a properly perfected mechanic's lien relates back to the date construction commenced or the date of the first delivery of materials, meaning it can take priority ahead of a construction loan mortgage recorded after that date — a risk construction lenders manage through title insurance date-down endorsements, lien waivers collected at each draw, and, in some states, statutory notice of commencement filings. Title companies typically will not insure over unresolved mechanic's lien exposure without a completion bond, lien waiver, or indemnity, making lien releases a routine closing condition on every construction draw.