What is a Mechanics Lien?
A Mechanics Lien definition in Canada depends on the province where the lien is being registered. In some provinces Mechanics Liens are the same as a Builders Lien or Construction Lien. In the United States Builders Liens are known as Mechanics Liens.
In some Canadian provinces, a mechanics’ lien is different. If you have provided work and-or materials to a vehicle, or in some provinces property, you can file a Mechanics’ Lien. Mechanics Liens are a risk management instrument. A Mechanics Lien ensures you have a secured interest in a vehicle or property you have worked on or to which you have supplied materials. Generally liens are a collection tool to be used in the event of non-payment.
The advantages of a Mechanics’ Lien
The presence of a Mechanics’ Lien on a vehicle title helps to prevent the sale and-or transfer of ownership. A vehicle cannot be sold or traded in if there is a lien against it.
Once you file a Mechanics’ Lien you are considered a secured interest holder. Being a secured interest holder entitles you to some right. For example, if the vehicle you did work on is about to be sold, as a secured interest holder, you can have the vehicle seized and potentially sold at auction in order to recover your unpaid account. The Mechanics’ Lien will also show up when a purchaser does a lien check.
If you have provided work and-or labour on a vehicle and have not received payment, consider filing a Mechanics’ Lien. If you have any questions give us a call or schedule a free introductory consultation on filing a Mechanics Lien.