A mechanics lien is a razor sharp instrument used by contractors, tradesmen, electricians, plumbers, chimney people, landscapers, carpenters, architects, and engineers when they make improvements to real property. A mechanics lien enables these professionals to put a lien on a piece of property without having a contract with the owner of that property.
The way it works is that a general contractor will hire someone like an electrician or a plumber to do work on a construction job to make improvements to a real property. I advise clients as a Long Island Business Attorney that at some point in the project the funds run out and the contractor does not get paid. What does he or she do? They place what is called a mechanics lien on the property. A mechanics lien is like a mortgage. It's an encumbrance on a piece of real property. What that does is enable you to foreclose on that lien at some point if you don't get paid and bring the owner of that real property into the picture. It's a very powerful tool, a very successful weapon used by contractors in today's business world.
If you have questions about a mechanics lien, contact our experienced Business Attornies.