mechanic's lien

mechanic's lien definition - business

mechanic's lien

A claim placed on specific real estate in order to secure payment for work performed by a contractor or laborer, or materials provided by a supplier. The lien may result in a forced sale of the property in order to satisfy the claim.

Does a mechanic's lien placed on property apply to a new owner if the property is sold? If so, how can I determine if a mechanic's lien is on property I am planning to purchase?

Yes, a mechanic's lien on the title to the property is attached to the land itself, not to the person who created the debt. Reviewing the title to the property will tell you if there is a lien. People trying to enforce mechanic's liens want the public to find their notice, so it's usually not a difficult discovery to make on a title. You may do this or have a title search commissioned prior to closing to confirm that there are no outstanding liens on the property.

Joan A. Koffman, Esq., Real Estate Attorney, Koffman & Dreyer, Newton, MA

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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