What is a Materialmen’s Lien?

Those who perform work on a home or a commercial property expect to be paid for their services. If they are not paid, they can take legal action. In most cases, it is possible for individual tradesmen to take this action against a homeowner even in cases where they were hired by a general contractor.

One of the methods of collecting for unpaid work is a materialmen’s lien. A materialmen’s lien is very similar to a mechanic’s lien. A mechanic’s lien is usually placed on a property in situations where someone who did physical work was not paid for his labor. A materialmen’s lein, on the other hand, may be used by someone who has supplied materials for a construction project and not been compensated for those materials.

A materialmen’s lien is an important tool for a person who provides material to recover money when he is not paid for the products he provides. Homeowners and property owners, however, can face significant financial consequences when this type of lien is placed on their home. An experienced Las Vegas, NV business lawyer should be consulted for help both by material providers who want to place a lien on property and by homeowners who want to protect themselves and their real estate investments from a potential lien.

What is a Materialmen’s Lien?

A lien gives someone a security interest in, or a claim on, a property. In some cases, a lien holder can actually force the sale of the property in order to collect on unpaid debts. In most situations, however, the lien simply remains on the property and prevents the owners from having clean title. When and if the owners decide to sell the property, they must satisfy the lien. This means that the lien holder must be paid the money owed in order to release the security interest.

A materialmen’s lien is specifically placed on a property in situations where the lien holder is not paid for the materials provided for a construction project. Typically, this type of lien can be obtained only when the materials were used to make improvements in real property. For example, someone who supplied lumber for a new build home or flooring for the construction of a new multi-family housing unit would obtain a lien on the property if not paid for the lumber or the flooring.

When a lien is placed on a property, it can be difficult or impossible for the owner of the property to sell it or to secure financing. This can create major problems when a homeowner has a construction loan and needs to transition to a traditional home loan when the construction project is complete. Until the materials are paid for and the materialmen’s lien is removed, the bank may be unwilling to close on the loan.

There are legal steps that a supplier must take to secure a materialmen’s lien and there are steps a homeowner can take when a construction project begins to protect himself from liens due to a contractor failing to pay a subcontractor. A Las Vegas real estate lawyer at Pintar Albiston LLP can help homeowners and construction professionals with materialmen’s liens in Nevada. Call today to learn more.