A mechanic’s lien is an important legal document that protects parties in a worse-case scenario. While many have heard of other protective legal documents, such as prenuptial agreements, estate plans, and more – many do not know what a mechanic’s lien is or how lawyers in Springfield MO can protect their interests. This is why we are talking about them today.
So what is a mechanic’s lien anyway?
In general terms, a lien is a legal claim that one party has over another party until a debt has been repaid.
A mechanic’s lien ensures that a laborer will get paid for the service they provide.
Imagine that you are having a new home built. The contractor may put a mechanic’s lien on the home until he is paid in full for the completion of the home.
Steeped In History
Mechanic’s Liens have been used in the U.S.A. since the 1700’s. In fact, Thomas Jefferson promoted their use as legally sensible. Given that they go back to the 1700’s, it should come as no surprise that the common perception that these apply to vehicle mechanics is not accurate. Sometimes, people will refer to mechanic’s liens as construction liens to avoid such confusion.
Why They Exist
Mechanic’s liens are very useful, in that they protect contractors in the event that they complete services as agreed yet have difficulty in receiving payment. A good business litigation lawyer springfield mo can make this a very powerful tool that provides significant protection in a contractor laboring without payment in such a way that puts his or her business in jeopardy.
Communication Is Key
When it comes to mechanic’s liens, it is important that a contractor explain what they are to their clients and that they make the language of such a lien clear.
It is also important to bear in mind that mechanic’s lien terms vary depending on your state. A lien in one state might not hold up in another. So it’s important to consult a reliable attorney on such a matter, specifically from the perspective of the contractor.