Builder's Lien

Definition

A legal claim on a property filed by contractors or suppliers who weren't paid for work or materials. It's the construction industry's version of 'I'm not leaving until you pay me.'

Example Usage

The general contractor filed a builder's lien on the property when the developer refused to pay for the foundation work.

Origin

Legal terminology; 'lien' comes from Old French 'lier' (to bind).

Fun Fact

Builder's liens typically take priority over mortgage holders in some states, which explains why lenders care so much about subcontractor payments.

Source: Mechanics Lien Law and Construction standards

Related Terms

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comp killer

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earnest

In real estate, it's the money you throw at a seller to prove you're serious about buying their overpriced house and not just window shopping. This deposit gets held in escrow as collateral for your commitment, because apparently your word means nothing without cash backing it up. Lose it if you back out, keep it applied to the purchase if you follow through—it's basically a financial pinky promise.

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Adjustable-Rate Mortgage

A mortgage with an interest rate that changes after an initial fixed period—basically, the bank's way of saying 'we got you started cheap, but wait until the teaser rate expires.'

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joint tenancy

A form of property ownership where two or more parties hold equal, undivided interest with right of survivorship, meaning the property automatically transfers to surviving owners upon one's death. It's estate planning that bypasses probate court, assuming everyone stays friendly.

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Advanced

quiet title action

A lawsuit to establish clear ownership when a property's title is messier than a reality TV custody battle. It's how you legally tell all the random people with claims on your property to take a hike.

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Advanced

BRRRR

An acronym for Buy, Rehab, Rent, Refinance, Repeat—a wealth-building strategy where investors recycle their capital by refinancing rental properties to pull out equity for the next deal. It's the real estate equivalent of a perpetual motion machine, minus the laws of thermodynamics.

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