Mechanic’s liens are a powerful legal tool for contractors, subcontractors, and material suppliers who haven’t been paid for work they performed on a property. But while they help ensure fair payment in the construction industry, they can also create serious complications for property owners, buyers, and lenders. A mechanic’s lien can stop a property sale, delay financing, or even lead to foreclosure if not handled properly.
In Massachusetts, mechanic’s liens are governed by strict deadlines and procedures. Understanding how they work—and how to prevent them from disrupting real estate transactions—can help property owners and investors avoid costly legal battles.
What Is a Mechanic’s Lien?
A mechanic’s lien is a legal claim against a property that secures unpaid debts for construction work or materials. If a contractor, subcontractor, or supplier is not paid for their work, they can file a lien to ensure they have a claim on the property until the debt is resolved.
Unlike other types of liens, a mechanic’s lien attaches to the property itself. That means even if the owner paid the general contractor in full, a subcontractor or supplier who wasn’t paid can still file a lien. Until the lien is removed, it can prevent the property from being sold, refinanced, or transferred.
How Mechanic’s Liens Affect Property Owners, Buyers, and Lenders
For property owners, an unexpected mechanic’s lien can complicate financing, block sales, and even lead to litigation. The owner may be forced to pay the lien—even if they already paid the general contractor—to clear the title.
For buyers, a mechanic’s lien can be an unwelcome surprise during a real estate transaction. If a lien appears on a title search, the sale cannot proceed until it is resolved, which can cause delays or force the buyer to walk away.
For lenders, a mechanic’s lien can affect loan priority and financing approval. Many lenders refuse to issue loans on properties with outstanding liens because the lienholder may have a claim superior to the mortgage in a foreclosure scenario.
The Process for Filing a Mechanic’s Lien in Massachusetts
Massachusetts has strict rules governing mechanic’s liens, and any misstep can render a lien invalid. The process typically involves three key steps:
- Notice of Contract – The contractor, subcontractor, or supplier must file a notice at the Registry of Deeds within 60 to 90 days of completing their work.
- Statement of Account – The claimant must then file a statement detailing the amount owed within 90 to 120 days after finishing the job.
- Enforcement Through the Courts – If the lien is not resolved, the claimant must file a lawsuit within 90 days after recording the Statement of Account to enforce the lien. If they fail to do so, the lien expires.
How to Prevent or Resolve a Mechanic’s Lien
For property owners, tracking all contractor payments and requiring lien waivers can help prevent liens from being filed in the first place. Lien waivers are documents that confirm subcontractors and suppliers have been paid and waive their right to file a lien.
For buyers and lenders, conducting a title search before closing is essential. A mechanic’s lien will show up as a cloud on the title, alerting parties to potential problems before the transaction moves forward.
If a lien has already been filed, Massachusetts law allows property owners to bond off the lien. This means replacing the lien with a surety bond, which allows the title to be cleared while the payment dispute is resolved.
Final Thoughts
Mechanic’s liens can create serious issues for real estate transactions, even for buyers and lenders who had nothing to do with the original construction dispute. Understanding how they work and taking proactive steps to prevent them can save property owners, investors, and real estate professionals from costly delays and legal complications.
If you’re facing a mechanic’s lien issue or want to ensure your real estate transactions stay lien-free, consulting with an experienced real estate attorney is the best way to protect your interests.
