The Mellor Law Firm, APLC

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What’s the Difference Between Construction Liens and Mechanic’s Liens?

July 7, 2021 by Anne Hunt

Construction liens and mechanic’s liens on a person’s home or commercial building can cause problems with resale value. They may likewise increase the potential for property loss. 

A lien that was paid and not removed, or placed unfairly, could also result in legal concerns. Here is what property owners should know about these liens.

What is a Lien?

A lien is a legal claim against a property. It’s placed there by a creditor, giving them the right and opportunity to collect what’s owed. Many homeowners have mortgages, for example, which are a typical and readily accepted type of lien. 

There are also liens for taxes and unpaid bills that relate to work completed on the property. Some types of liens are much more damaging than others.

What is a Construction Lien?

An understanding of construction law can help property owners know how construction liens work. Basically, contractors and subcontractors can place these liens if they’re not paid for the work they did on the home or business.

A href=”https://www.investopedia.com/terms/c/construction-lien.asp”>construction lien is designed to make sure that individuals and companies in the construction trade receive full payment for their work.

What is a Mechanic’s Lien?

While a contractor or subcontractor can also place a mechanic’s lien, the option to put this kind of lien on a property also extends to builders, material suppliers, and other stakeholders. As a result, it has a much broader reach and is typically considered a higher priority than other types of liens on the property.

 

There are two major differences between a construction lien and a mechanic’s lien. One is the people who may place these liens, and the other is the priority that lien has if it’s competing with other claims against the home or commercial space. Since these liens relate to construction law, individual property owners may not realize how much impact a lien has on a property’s title.

 

Good legal representation is the best way to handle any liens on a property. An understanding of Riverside construction law is also critical to ensure the best resolution to a case. Knowing what construction liens and mechanic’s liens are and how a law firm can help with those claims makes it easier to get issues resolved to everyone’s satisfaction.

 

Filed Under: Construction Law Education Tagged With: construction attorney, construction law, construction law attorney

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