Compliance

What is Mechanic's Lien?

A statutory claim against a property filed by an unpaid contractor or supplier, which can cloud title and complicate property transactions.

Definition

A mechanic's lien is a statutory claim filed against a property by a contractor, subcontractor, or material supplier who has not been paid for work performed or materials delivered. The lien attaches to the property itself, not the property owner personally, and must be satisfied before the property can be sold or refinanced with clear title. Mechanic's liens are relevant to CAM administration because building maintenance and repair work — much of which flows through CAM expense pools — involves contractors who have lien rights. If a landlord disputes or delays payment to a vendor whose services are billed through CAM, the resulting lien creates legal and financial complications for the property. Tenant auditors may also question whether expenses associated with lien disputes are properly recoverable through CAM.

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