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Construction Lien

Definition - What does Construction Lien mean?

Construction lien in simple terms may be defined as a claim made by the contractor or any other party against a property. It is important that this party played a part in the construction of the property. A construction lien is designed to protect and safeguard the interest of professionals such as contractors against the risk of not being paid.

Justipedia explains Construction Lien

If the owner of the property is not happy with the construction and they decide not to pay the contractor, the contractor can go to court to file a construction lien. In the event that the property is sold, the lien must be satisfied in order to clear the title.

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