Mechanic's Lien
A legal claim a contractor, subcontractor, or supplier can place on a property to secure payment for work done or materials provided.
What It Means
A mechanic’s lien gives contractors, subcontractors, and material suppliers a legal claim against your property if they are not paid for work they performed or materials they provided. The lien attaches to the property itself, not just to the person who owes the money.
Why It Matters
In Minnesota, a mechanic’s lien can be filed even if the property owner already paid the general contractor, but the general contractor failed to pay subcontractors. This means a homeowner could face a lien on their home even though they thought all the bills were paid.
Key deadlines:
- A lien statement must be filed within 120 days after the last work was done
- A lawsuit to enforce the lien must be filed within one year after the lien statement
- Property owners can require a contractor to provide lien waivers from subcontractors
Example
A homeowner hires a contractor to remodel their kitchen. The contractor hires a plumber, but never pays the plumber. The plumber can file a mechanic’s lien against the homeowner’s property to collect payment, even though the homeowner already paid the contractor in full.
Home improvement projects, construction disputes, and real estate title searches.