construction lien

Definition

A legal claim filed by contractors, subcontractors, or suppliers against a property when they haven't been paid for work or materials. The construction industry's way of ensuring they don't become involuntary donors.

Example Usage

The electrician filed a construction lien after the developer failed to pay for six months of work.

Origin

Also known as a mechanic's lien, dating to the Mechanics Lien Act of 1791 in Maryland, one of the first such laws in America

Fun Fact

In some states, construction liens can take priority over mortgages recorded earlier, making title companies very nervous.

Source: Construction and real estate law terminology

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