Contract Glossary
Lien
Definition
A legal claim on someone's property as security for a debt. If the debt isn't paid, the lienholder can force a sale of the property to recover what's owed. Common types include mortgage liens, mechanic's liens, and tax liens.
In Practice
If you're a contractor and your client doesn't pay, a mechanic's lien on their property is one of your strongest tools. It prevents them from selling or refinancing until they pay you. Filing deadlines are strict — in many states, you have 60–90 days after completing the work to file. Miss the deadline, and you lose the right.
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Frequently asked questions about lien
A claim that contractors, subcontractors, and suppliers can place on a property when they haven't been paid for work or materials. It attaches to the property itself — not the person — which means the property can't be sold clean until the lien is resolved. Filing requirements and deadlines vary by state.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.