Is a mechanic’s lien threatening your property sale?

On Behalf of | Jun 2, 2022 | Uncategorized

In the state of Connecticut, contractors or service providers who are not paid for their work can put a mechanic’s lien on a property. Those who contribute to the improvement of a property, such as suppliers furnishing material or laborers doing the work, have an interest in the property, particularly if the property owner defaulted on a promise of payment.

A mechanic’s lien is an option for the contractor to take payment by force but there are limits in cost and scope. However, it can keep a property title tied up and restricted from sale or transfer.

Circumstances of a mechanic’s lien

A mechanic’s lien can be a common thing as contractors can use it to ensure payment. General contractors or other companies providing improvement services will often file a lien against a property before starting their work to ensure a property owner pays the final bill. Once the work is over and after receipt of payment, the contractor releases the lien. State law dictates filing procedures for a lien, including the timeline for submitting the lien and how much the lien can be for.

Consequences of a mechanic’s lien

Connecticut statute allows placing a mechanic’s lien on buildings or land for claims involving $10 or more worth of unpaid materials or services. The lien is enforceable by foreclosure, similar to what takes place with mortgage foreclosure. The contractor can force the sale of the property and receive payment from the proceeds.

There are options for a property owner to have a mechanic’s lien discharged or reduced. This must take place through the court system and typically requires legal assistance.