Why might a contractor need to file a lien?

A contractor may need to file a lien primarily to secure payment for work performed on a property. When a contractor completes a project or delivers materials, they have a legal right to compensation for their services. If the property owner fails to pay for the work, filing a lien serves as a legal claim against the property, ensuring that the contractor has a right to payment. This lien effectively protects the contractor's financial interest by establishing a public record that they are owed money, which can influence the property owner's ability to sell or refinance the property until the debt is resolved. This mechanism is crucial in the construction industry, where payments can sometimes be delayed or disputed. It provides contractors with a way to assert their rights and seek the compensation they are entitled to for the services rendered.