Lien
Also called: Mechanic's lien, Construction lien, Builder's lien, Materialman's lien
A claim registered against the property you worked on, which makes it difficult for the owner to sell or refinance until you are paid. It is the trades' main remedy for non-payment and it is entirely a creature of statute: who may claim, what notice must be served first, what the claim must contain, and above all the deadline are set by the province or state the work is in. The deadline is short, it is counted from a date the statute defines rather than from the day you gave up on being paid, and missing it usually ends the right altogether. If you are heading towards one, get the rule for that jurisdiction early and from someone who practises there.
This one depends on where you work
The rule behind lien is set by the province or state the work is in, and the versions do not agree with one another. We have described the shape of it and deliberately not named a deadline, a cap or a percentage — check the rule where you work, or ask someone who practises there.
Related terms
- Lien waiverA signed document in which you give up your right to lien for work you have been paid for.
- RetainageA slice of each payment the customer keeps back until the work is finished and any claim period has passed, then releases.
- Substantial completionThe point at which the work is finished enough for the customer to use the property for what it is meant for, even though small items remain.
- ContractThe agreement between you and the customer about what will be done, for how much, and on what terms.
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