Mechanic's Lien Template

Use our Mechanic’s Lien to request payment for services or materials.

Updated October 1, 2023
Reviewed by Susan Chai, Esq.

A Mechanic’s Lien is a legal tool that can be used by skilled laborers seeking to recover money owed to them for services or materials provided on a project. If you are a contractor, subcontractor, or supplier who has not received payment for your work or supplies, filing a mechanic’s lien can increase your chances of securing the payment.

A lien waiver is provided and signed once the payment is received. This prevents any future liens on the property for the specific work or materials, protecting both the one who pays and the one who gets paid.

• What Is a Mechanic's Lien?
• When Do I Need a Mechanic's Lien Form?
• Who Can File a Mechanic's Lien?
• Consequences of Not Having a Mechanic's Lien
• Common Situations for Using a Mechanic's Lien Form
• What Should Be Included in a Mechanic's Lien?
• Mechanic's Lien Sample
• Frequently Asked Questions

What Is a Mechanic’s Lien?

A mechanic’s lien is a formal notice filed with a court of appropriate jurisdiction indicating a financial interest in a property. Sometimes referred to as a contractor’s lien or a construction lien, this form details money owed to the contractor for either service rendered or materials provided on a construction or home or building improvement project.

Practically speaking, a builder or artisan cannot go back to the property and remove the structure they built or the paint they applied to the walls if they don’t get paid. However, a mechanic’s lien on the property preserves their claim for payment.

If the owner doesn’t pay the bill before selling the property, the lien will be addressed when it is sold. Additionally, a lien owner may force the sale of the home to satisfy the lien.

When Do I Need a Mechanic’s Lien Form?

First, you must have provided goods or services to construct or improve real estate property. Different states have different rules about what constitutes appropriate work for a mechanic’s lien; however, generally speaking, the following work and contractors, if gone unpaid, may qualify for one:

• The provision of goods, such as lumber, plumbing supply, or electrical equipment;
• Labor, such as carpenters, plumbers, electricians, laborers, mechanical/HVAC contractors, etc.;
• Designers such as civil engineers and architects who were involved in the plans and specifications of the work and
• Fabricators of specialty items later installed or incorporated into the project.

Second, the work must be unpaid. If you have provided goods or services to enhance the real property, and your bill has not been paid, this form is an appropriate remedy.

In most states, even if a contractor has no direct contract with the property owner, they may file a lien. In other words, imagine a project run by a general contractor where the plumber is not paid for their materials or labor. Even though the plumber’s contract is with the general contractor and not the homeowner, the plumber may file a contractor’s lien against the homeowner directly.

Who Can File a Mechanic’s Lien?

A mechanic’s lien can be filed by contractors, subcontractors, laborers, and material suppliers on a property if they don’t get paid. If you’re a skilled laborer trying to collect money owed to you, you may likely be able to file a mechanic’s lien.

Consequences of Not Having a Mechanic’s Lien

Without one, a contractor risks not being paid for work performed or services provided. When a property owner doesn’t pay a bill for work done on the property, the mechanic’s lien gives the contractor a security interest and preserves the claim for payment.

When the property is sold, the proceeds will be divided among the various security interest holders, including first and second mortgages, tax liens, Homeowners Association (HOA) dues, and other construction liens, in the order of priority.

Any money over and above those debts will go to the property owner. However, without this form, the contractor will have no claim to the sale proceeds, and there is no guarantee that the funds due and owing will ever be paid.

Contractors should be cautious not to assume false security about a mechanic’s lien. For a lien to be legal, it must be perfected. Each state has its requirements for how to perfect a construction lien.

However, generally, the following steps must be taken for a contractor’s lien to be valid:

1. First, in some states, the contractor must provide notice to the property owner that money is owed;
2. Some states also require notices about the beginning of the work on the property and/or a public notice of the intention to file the lien if it remains unpaid;
3. Next, all states require a notice or claim of the lien to be filed in the requisite public records office. This notice must be filed within a specific period after either the work was completed or the materials were supplied;
4. As state law dictates, the contractor must file a suit to foreclose the lien within a specific period.

A homeowner can remove the lien through two steps: First, the homeowner must pay the amount owed. Second, the lienholder must file the appropriate paperwork to release the lien.

Common Situations for Using a Mechanic’s Lien Form

This form is designed to protect contractors who, by their products or services, enhance the property’s value. Consequently, they are most commonly used in new construction or improvements to the property.

Not every cost associated with a project is subject to this form. For example, a contractor may bring in laborers to replace the roof of a home. The contractor is entitled to a mechanic’s lien for the shingles and other building materials and the labor costs for the workers who tear off the old roof and install the new roof.

However, the cost of the rental of a portable latrine or the installation and removal of a security fence, while perhaps necessary for the comfort and safety of the workers, may not be subjected to a mechanic’s lien. The latter does not increase the property’s value, while the new roof does.

There is a priority to liens against the property. Generally speaking, liens take precedence based on the order in which they are filed. Consequently, a first mortgage takes priority over this form, as the mortgage was filed first. However, this form may take priority over a second mortgage, depending on when the mechanic’s lien and the second mortgage were filed.

Of course, there are exceptions to the “first in time” rule. For example, a tax lien takes precedence over a mechanic’s lien. Additionally, Homeowner’s Association assessment liens may take precedence. Similarly, this lien may take precedence over other previously recorded liens, depending on the state.

What Should Be Included in a Mechanic’s Lien?

Each state has its mechanic’s lien laws, so there will be variations in what should be included in a lien. However, the table below addresses each topic contemplated by all the states for ease of use.

Mechanic’s Lien Sample

Here’s what a typical Mechanic’s Lien looks like: