So what does a Mechanics lien have to do with construction? Aren’t mechanics supposed to only work on cars? Well, if you go back into the original definitions and history books, the term mechanic was originally used to define a person who performed work with their hands, or the modern day equivalent of a builder or trade person. The mechanics lien was first created in North America by Thomas Jefferson and was a type of Financial Engineering that would encourage building, conceived as a form of capital injection for the economy. A lien would allow a landowner to use his land as security for improvements. For example, if a landowner hired a builder to construct a barn, the builder knew that he would have security in the land and was more likely to take on the work instead of passing it off as too risky. Read More…
