Closings glossary
Mechanic's lien
A statutory lien securing payment for labor or materials that improved real property. The filing deadlines run from the last date work was performed or materials furnished.
What is a mechanic's lien in New York?
Quick Answer
The full definition
A statutory lien securing payment for labor or materials that improved real property. The filing deadlines run from the last date work was performed or materials furnished.
Which related terms should you know?
These are the terms that come up alongside mechanic's lien in the same file.
- Lien
- A claim against property securing payment of a debt. Liens rank by priority, and closing normally means paying or releasing every one ahead of the buyer's interest.
- Affidavit of title
- A sworn seller statement given at closing affirming no undisclosed liens, judgments or claims against the property. It supports the coverage written between the final search and the moment of recording.
- Open permit
- A DOB permit filed for work that was never signed off. Closing it usually means a licensed professional filing for inspection or formally withdrawing the job.
- Escrow (at closing)
- Funds or documents held by a neutral party until stated conditions are satisfied. At a New York closing it usually means a holdback from proceeds under a written escrow agreement.
- Title search
- The records examination behind a title report, covering the chain of title, encumbrances and court filings against the owners. It precedes the commitment.
Where does mechanic's lien come up in a New York City closing?
A Staten Island renovation ends in May and the roofer files in August, so the lien has to be bonded or paid before the September closing can happen.
What else should you read before closing?
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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.