When is a mechanic's lien filed?

A mechanic's lien is filed when an owner has not fully paid for work done on their property. This legal claim is used by contractors, subcontractors, and suppliers to ensure they are compensated for the work or materials provided. It serves as a security interest in the property, giving the lienholder the right to seek payment from the property owner if the owner fails to fulfill their financial obligations related to construction or renovation.

The rationale behind this is to protect the rights of those who contribute to the improvement of the property. If the owner has paid in full for the services rendered, there is no grounds for a mechanic's lien, as the obligation has been satisfied. Consequently, filing a lien is a necessary step for those who have not received the compensation they are owed, thereby helping ensure fair treatment in financial transactions linked to property development and maintenance.