Construction Lien

A construction lien, also known as a materialmen's or mechanic's lien, is a lien on real property which arises in favor of persons who furnish labor or materials used in constructing a building on, or making improvements to, real property. Once the party has furnished notice to the owner, contractor, and construction lender, the prospective lienor must file a verified statement of lien with the Probate Court of the county where the property is located. When a party perfects a lien according to a statute, the lien relates back to the date when the labor or materials were first provided to the project. Accordingly, a bank's mortgage lien filed subsequent to the date that the materials or labor were first provided would be junior in priority to a properly perfected mechanic's lien. The final step in perfecting the lien is to file suit in the Circuit Court of the county where the property is located.

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