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Mechanic's lien

Question
What is a mechanic's lien? 
Answer
When a property owner or contractor fails to pay workers and suppliers of material and services, a mechanic's lien is filed by those unpaid contractors for the value of work performed and materials furnished to construct or repair a structure.

The lien attaches to the real property upon which the structure is located, so that the owner may not pass clear title to a subsequent buyer without settling the amount of the lien. 
Brain Trust contributor: Editor, Streetwise Small Business Book of Lists
Related Categories: Credit, Legal, Real Estate
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