Final answer:
A Mechanic's Lien is a legal claim against a property by those who have supplied labor or materials for its improvement and have not been paid. It is a statutory lien, mostly settled by state law, and often requires enforcement through legal action within a certain timeframe.
Step-by-step explanation:
A Mechanic's Lien is a specific type of lien that gives security to workers and suppliers for the value of services rendered or materials provided during the construction or repair of a building or improvement to land. This type of lien ensures that contractors, subcontractors, laborers, and material suppliers who contribute to the improvement of property are paid, even if the property owner fails to directly fulfill the payment obligations. Mechanic's Liens are statutorily created and are usually a matter of state law, but the concept can also be found globally with various regional adaptations.
The process for filing a Mechanic's Lien typically involves filing a claim with the appropriate local authority, often a county recorder or a court, detailing the work or materials provided, the amount owed, and the property address. If the property owner does not resolve the debt, the lien can lead to a forced sale of the property to cover the debt. To enforce a Mechanic's Lien, legal action usually needs to be initiated within a specific timeframe, which varies by jurisdiction.