What is a “mechanic's lien” in the context of residential contracting?

A mechanic's lien in the context of residential contracting is a legal claim against a property that can be filed by contractors, subcontractors, or suppliers when they have not been paid for work performed or materials provided. This lien gives the claimant an interest in the property itself, which acts as a form of security for the debt owed. If payment is not received, the claimant may pursue legal action to enforce the lien, potentially leading to a forced sale of the property to settle the outstanding debt.

This concept is vital for contractors and suppliers as it ensures they have a recourse for payment in the event that financial disputes arise regarding their services or materials. Understanding the implications and procedures related to mechanic's liens is essential for managing risks and securing payments in residential contracting.