Definition of Construction lien:
A legal claim to payment made by a contractor or supplier who supplied labor and/or materials to improve a building or landscape, which is filed with the Registry of Deeds. The lien is placed upon the property if complete payment is not made to the filer. It typically must be paid out of the proceeds during the sale of the property. See also mechanics lien.
A construction lien is a claim made against a property by a contractor or subcontractor who has not been paid for work done on that property. Construction liens are designed to protect professionals from the risk of not being paid for services rendered.
A construction lien makes it difficult or impossible to sell or refinance a property because it makes its title unclear. In a worst-case scenario, it can force a sale of the house to provide the compensation.
How to use Construction lien in a sentence?
- If you are dissatisfied with the quality of work done, it's your responsibility to seek a resolution.
- A lien makes it difficult or impossible to sell or refinance a property.
- A contractor or subcontractor can file a construction lien against a property if the owner has not paid for work done on it.
Meaning of Construction lien & Construction lien Definition