There are several legal processes that exist in order to provide people some form of guarantee for goods or services that have been given. When such a legal process involves a guarantee of payment over contracted services that have been done and assigned to an improved piece of property, this refers to a mechanic’s lien.
People who are eligible to file a mechanic’s lien include contractors, subcontractors, and suppliers. This is usually filed for when the work in the contract has been finished and payment has not yet been received by the contractor or others. A mechanic’s lien includes in its guarantee the structure and the land where it stands. Therefore, a person who has not paid for whatever improvements were done on the structure or land cannot be given a clear title.
The derivation of the term mechanic’s lien is based on the fact that mechanics were the only ones who used to seek this type of guarantee. For example, a person can solicit repair or improvement services from a mechanic. In the event that the person fails to pay for the services rendered, the mechanic can file a mechanic’s lien at the local court office. Thus, it would be impossible for the person to obtain a clean title of the car until the mechanic’s lien has been lifted by payment. This method of seeking payment was eventually used in the areas or issues of construction. A mechanic’s lien in the construction business builds on the assumption that the owner soliciting repair or improvements will eventually pay the contractor, who is paying the subcontractors and other workers or suppliers.