What is a "contractor's lien" used for?

A contractor's lien, commonly known as a mechanic's lien, is a legal claim against a property that is filed by a contractor or supplier to secure payment for labor and materials provided for construction or renovation work. The primary purpose of this lien is to protect the contractor's right to be compensated for their work by ensuring that they have a financial claim against the property in question.

When a contractor performs work on a property but does not receive payment, filing a contractor's lien provides them with a way to seek compensation. It attaches to the property itself, meaning that if the property is sold, the lien must be settled (i.e., paid off) before the sale can proceed. This ensures that contractors, subcontractors, and material suppliers have a means of collecting their dues, thus promoting fairness in construction projects.

The other provided choices do not accurately reflect the nature and function of a contractor's lien. For instance, while ensuring compliance with project specifications, transferring ownership of property, or finalizing contracts between parties are all important aspects of construction projects, they are not related to the purpose of a contractor's lien. Therefore, the correct answer highlights the critical role that a lien plays in the financial transactions of construction work, safeguarding the interests of those who provide