What are "mechanics liens"?

Mechanics' liens are a specific type of legal claim that contractors, subcontractors, or suppliers may file against a property to secure payment for labor, materials, or services provided during construction or improvement projects. When a contractor completes work on a property but is not compensated, they have the right to file a mechanics' lien to ensure they can collect the amount owed. This lien attaches to the property itself, creating a legal obligation for the property owner to settle the debt before selling or refinancing the property.

By filing a mechanics' lien, the contractor or supplier has a legal recourse to recover the unpaid amount, which also serves as a warning to potential buyers or lenders that there is an outstanding obligation associated with the property. This mechanism helps protect the rights of those who contribute to the improvement of a property and encourages property owners to fulfill their payment responsibilities.

The other options, while relevant to real estate, do not accurately reflect the nature of mechanics' liens. Legal claims for unpaid property taxes pertain to governmental claims, disputes between buyers and sellers involve negotiations and agreements related to property transaction terms, and documents filed during the home buying process cover various forms and contracts necessary for the sale, none of which address the specific context of mechanics' liens.