Construction Lien Law

If you are embarking on a residential or commercial construction project, you may have heard about construction lien law. What is construction lien law, and how can you avoid financial difficulties associated with these provisions? Basically, construction lien laws are laws in place in many states to protect the financial interests of subcontractors who participate in construction projects. In order to engage in their regular business activities, these subcontractors often have to extend lines of credit to the primary contractors. If the primary contractors later fail to pay the subcontractors what they are rightfully owed, construction lien laws force the homeowners to contribute materially to the repayment of subcontractors. If payment is not made, the subcontractor has the right to make a claim on the ownership of the property. In cases that go unresolved, this can sometimes result in the property owner being forced to sell the property to pay back contractors and subcontractors.

Fast Facts

  • In most states, there are many legal protections that help shield homeowners from losing their properties to construction liens. However, in rare cases, this can occur.

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  • Construction Law

    Construction law pertains to all of the areas of law which are relevant to the construction process including ...
    • Site: realestatelawyers.com
  • Arizona Mechanics Lien Laws

    Individuals involved in the construction industry in the state of Arizona should be aware of important statute...
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  • Maryland Mechanics Lien Laws

    In the state of Maryland, understanding the procedures and deadlines for claims of liens is an essential compo...
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    • 4 of 6 user(s) found this useful
  • California Mechanics Lien Laws

    As a contractor, subcontractor, or materials supplier in the state of California, you need to know how to prot...
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    • 5 of 9 user(s) found this useful
  • Maine Mechanics Lien Laws

    In the state of Maine, specific state statutes cover lien claims and enforcement of lien claims.  Any individu...
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