What does "mechanic's lien" mean in contractor law?

A mechanic's lien is a legal claim that a contractor, subcontractor, or supplier can place on a property when they have provided labor or materials for improvements to that property but have not been compensated for their work. This right serves to protect the contractor's financial interests by ensuring that they have a legal avenue to seek payment when a property owner does not fulfill their financial obligations.

When a mechanic's lien is filed, it allows the contractor to take legal action to enforce the lien, potentially leading to the forced sale of the property to recover the owed amount. The lien acts like a claim against the property, which can complicate the owner's ability to sell or refinance it until the debt is settled.

This process underscores the importance of contractors being paid for their services, and it establishes a priority for payment claims over other types of financial interests associated with the property.