Mechanic’s Lien vs. Constitutional Lien: Deep Dive

Mechanic’s Lien vs. Constitutional Lien: Deep Dive

If you've ever worked in construction or contracting, you probably know that getting paid isn’t always as smooth as a fresh concrete pour. Sometimes, you finish the job, send the invoice, and… crickets. That’s where liens come in—your legal superpower to make sure you get your hard-earned money.

But not all liens are created equal. Today, we're tackling two big ones: mechanic’s liens and constitutional liens.


Mechanic’s Lien: The Classic Choice

A mechanic’s lien (also called a construction lien) is a legal claim filed by contractors, subcontractors, or suppliers against a property when they haven't been paid for their work or materials. It’s a formal process with deadlines, paperwork, and usually a need to file a lawsuit if the owner still doesn’t pay up.

The process varies by state, but generally, here’s how it works:

  1. You provide labor or materials for a construction project.
  2. You don’t get paid (cue frustration).
  3. You file a lien against the property in the appropriate county office.
  4. The lien encumbers the property, making it difficult for the owner to sell or refinance until they pay you.

Filing a mechanic’s lien often gets property owners to settle up quickly. Nobody likes a legal cloud hanging over their real estate!


Constitutional Liens: The Lone Star Special

While mechanic’s liens require filing paperwork with the government, a constitutional lien is a different beast—one that doesn’t necessarily require filing at all (in some cases). These liens exist under certain state constitutions (hence the name) and grant protection to workers and contractors automatically.

Texas is the poster child for constitutional liens, but a few other states have similar laws. Unlike mechanic’s liens, which require strict filing deadlines, constitutional liens can sometimes exist simply because work was performed—no extra paperwork needed (though it’s still a good idea to file).

That said, each state has its own quirks when it comes to constitutional liens. Let’s take a look.


States That Allow Constitutional Liens (and Their Quirks)

Here’s a breakdown of the states that allow constitutional liens and what makes each one unique:

1. Texas

  • Texas contractors get a built-in constitutional lien under Article 16, Section 37 of the Texas Constitution.
  • The lien automatically applies to laborers, mechanics, and material suppliers who improve real estate.
  • However, subcontractors do NOT qualify for constitutional lien rights (they must use the mechanic’s lien process).
  • While the lien exists automatically, filing it in county records is still a good idea to enforce it.

2. Louisiana

  • Louisiana has privileges (liens) under its constitution that protect unpaid workers.
  • Unlike Texas, filing is usually required to make the lien enforceable.
  • Louisiana’s system ties back to its French-based Napoleonic legal system, which makes its lien laws different from common-law states.

3. North Carolina

  • North Carolina has constitutional provisions protecting laborers, but they’re rarely used compared to the statutory mechanic’s lien process.
  • The courts generally interpret these liens narrowly, making them less practical in real-world use.

4. South Carolina (Maybe)

  • South Carolina’s constitution has language that hints at lien protections, but statutory mechanic’s liens are still the norm.
  • Like North Carolina, courts are hesitant to give constitutional liens much power without additional legislative backing.


Which One Should You Use?

If you're working in a state with constitutional lien rights (especially Texas), you may have an automatic lien without needing to file anything—but filing is still the safest move to enforce your rights.

For everyone else, mechanic’s liens are the go-to option. Just make sure you follow your state's deadlines and procedures, or your lien might get thrown out faster than an unpaid invoice at tax time.


Final Thoughts

Mechanic’s liens and constitutional liens are both tools to ensure you get paid, but they work differently depending on the state. If you’re in Texas, you might have constitutional lien rights automatically, but filing a mechanic’s lien is still the best way to enforce payment.

For everyone else, mechanic’s liens remain the primary way to secure payment, and constitutional liens are more of a rare legal bonus. Either way, the key takeaway is this: Do the work, know your rights, and don’t be afraid to use liens when needed!

And if you ever find yourself unpaid and confused, maybe it’s time to consult a lawyer… or at least send a very strongly worded email.

Ricardo Garcia

AE @ Tucker Albin | Higher Recovery, Lower Costs. Success-Based Pricing. ??

1 个月

Great insight!

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