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Define Materialman's Lien in Real Estate

Materialman's Lien: 

A mechanic's lien, also known as a materialman's lien, is a type of legal claim that property builders, suppliers, and contractors can use to get paid for work they have done on a property. It's a way to make sure they get paid for the materials and labor they have contributed to a construction project.


For example, if a contractor builds a new addition onto a house but the property owner doesn't pay the contractor, the contractor can file a mechanic's lien on the property. This lien gives the contractor a legal claim to the property and allows them to force a sale of the property to collect the money owed to them.

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A mechanic's lien is considered a "junior" lien because it is subordinate to other liens that may exist on the property, such as a mortgage or a tax lien. This means that if the property is sold or foreclosed on, any money from the sale will first go to pay off the higher priority liens before any money is paid to the holder of the mechanic's lien.

The priority of a mechanic's lien is determined by the date when the work was performed, not the date when the lien was filed. This means that if there are multiple mechanic's liens on a property, the lien with the earliest date of work performed will have priority over later liens.

For example, if a subcontractor files a mechanic's lien for work they performed in January and another subcontractor files a lien for work performed in March, the January lien will have priority over the March lien.

Overall, the priority of a mechanic's lien can affect the likelihood of getting paid in full. If there are multiple liens on a property and the value of the property is not enough to cover all the liens, the holder of the junior lien may not get paid in full or at all.

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A mechanic's lien, what could it be?
It's a way for builders to ensure they're paid fairly!
They work on a property with great care,
And want to make sure they get their fair share.

When they're done, they might not get paid,
And that's when a mechanic's lien comes into play.
It's a legal claim on the property itself,
Ensuring the builders are not put on the shelf.

The lien's based on when the work was done,
Not when the lien was recorded, not just for fun.
This order of priority is how it's defined,
And it gives the builders peace of mind.

So if you're a builder or a supplier too,
A mechanic's lien is something to pursue.
It secures your debt and ensures you're paid,
For the hard work and materials you've made!

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