What Is a Mechanic's Lien Agent?

When a property owner cannot pay his contractor or construction workers the money owed, a mechanic's lien may be placed on his property. To help with the paperwork involved in the lien, he may hire a lien agent. These agents can be individuals or entire companies and may be required to hold a state license.

Background

A mechanic's lien is a contractor or laborer's financial claim on a piece of property, occurring when a property owner has not paid for work completed.

Purpose

The lien secures the debt owed, ensuring payment. When an owner has a lien placed on property he then sells, the contractor may take some of the proceeds to pay the money owed.

Agent

A mechanic's lien agent is a person or organization designated by the property
owner to act on his behalf. Often, attorneys and title insurance companies are
used as lien agents.

Duties

Typical duties of the agent include accepting paperwork and entering into
financial agreements. Some agents are listed on building permits.

License

Some states will require a license of a lien agent

Payment

A mechanic's lien agent enters into a business agreement with the property owner and charges a fee for services. An agent's salary can vary widely depending on the agent's experience, location and industry.

Who Can HelpSponsored