Liens & Encumbrances

Mechanic's Lien

An involuntary lien filed by a contractor, subcontractor, or supplier who has not been paid for work performed on a property.


Definition

A mechanic's lien (also called a construction lien) protects workers and material suppliers who improve real property but have not been paid. In New York, the lien must be filed within 8 months of the last date work was performed or materials were supplied (4 months for one- and two-family residences). The lien attaches to the specific property that was improved. Priority dates back to the date the work commenced, not the date the lien was filed, which means a mechanic's lien can take priority over a mortgage recorded after construction began.

Exam Tip

A mechanic's lien dates back to when work STARTED, not when the lien was filed. This can give it priority over later-recorded mortgages.

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