by Richard R. Hammar, J.D., LL.M., CPA

Materialmen’s Liens

§ 7.15
Key point 7-15. A company that supplies building materials for a construction project can claim a "materialmen's lien" against the property if it is not paid. This means that the company can sell the property to enforce its lien and recover the cost of the materials. Churches are not exempt from such liens.

In most states, a company that supplies building materials for a construction project can claim a "materialman's lien" against the property in the event it is not paid. A lien is a security interest in property, much like a mortgage, that gives the supplier the legal right to sell the property to recover the cost of the materials. In many cases, a property owner pays a general contractor for construction materials, but the general contractor fails to pay the supplier. In such a case the owner must pay the supplier in order to avoid the sale of its property to enforce the lien. In other ...

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