A construction lien, also known as a mechanic’s lien, laborer’s lien, or artisan’s lien, is a type of lien that gives contractors a security interest in property until they have been paid for their work on that property.
Should the party whose property is subject to the lien fail to pay for the work performed, the contractor can exercise the lien and reclaim the property. Construction liens are statutory in origin and are often created automatically. For example, Florida law automatically creates a construction lien whenever construction is performed, although the lien-holder is required to notify the property owner of the lien’s existence.
[Last updated in July of 2022 by the Wex Definitions Team]