• Consumers
• Legal Issues
• Understanding Mechanic's Liens
• Mechanic's Lien

What is a mechanic's lien?

This section describes a mechanic's lien and the problems it can cause property owners.

A mechanic's lien is a "hold" against your property that, if unpaid, allows a foreclosure action, forcing the sale of your home. It is recorded with the County Recorder's office by the unpaid contractor, subcontractor or supplier.

Sometimes liens occur when the prime contractor has not paid subcontractors or suppliers. Legally, the homeowner is ultimately responsible for payment - even if they have already paid the prime contractor.

What happens when a lien is filed against your property?

A lien can result in a range of problems which include:

• Foreclosure, if the homeowner doesn't pay off the lien or cannot afford to do so;
• Double payment for the same job--if the homeowner pays the prime contractor--and then has to pay the sub or supplier who wasn't paid by the prime;
• A cloud on the title of the property, which can affect the homeowner's ability to borrow against, refinance, or sell the property.

You may wish to view Civil Code sections 3110-3154 or contact an attorney or legal office for more information about Mechanic's liens.