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What is a mechanics lien? This presentation answers that question by answering a more fundamental one: what is a lien? Going through the legal foundation for liens and security instruments, the presentation explains what a lien is, what a mechanics lien is, where it comes from and why its used.
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Mechanics LienWhat is a ?
Mechanics LienWhat is a ?
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance or some other obligation. The owner of the property, who grants the lien, is referred to as the lienor and the person who has the benefit of the lien is referred to as the lienee.
Lien
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance or some other obligation. The owner of the property, who grants the lien, is referred to as the lienor and the person who has the benefit of the lien is referred to as the lienee.
Lien
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance or some other obligation. The owner of the property, who grants the lien, is referred to as the lienor and the person who has the benefit of the lien is referred to as the lienee.
Lien
This Is Your Cousin Carl.
He Wants $10,000.
He can’t comb his own hair, so you don’t trust that he will pay you back.
Carl Owns This Sweet Ride
“Dude...I promise to pay you back.
If I don’t - you can have my sweet ride.”
You Give Carl $10,000
Carl Keeps His Sweet Ride
Carl promises to give you his sweet ride if he doesn’t pay you the $10,000 back.
In law, a lien is a form of security interest granted over an item of property to secure the payment of a debt or performance or some other obligation...
Lien
You Just Created A“Security Interest”
With Carl*
*Additional paperwork required.
How You Can Get A Security Interest
Someone AgreesTo Give This ToYou
How You Can Get A Security Interest
Someone AgreesTo Give This ToYou
The Law Gives It To You Automatically
Mechanics Lien
?
Mechanics Lien
?
Mechanics Lien
?
A mechanic’s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.
WHY?
?
WHY?
?
Thomas Jefferson introduced the first mechanics lien legislation.
?
?
No one was willing to build out Washington D.C. because they were afraid of not getting paid
?
If You Build It
And We Don’t Pay For It
You Can Have It
?
?
This would have never worked pre-America, because land ownership was reserved for aristocrats. America, however, was land-rich.
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