In this video, I explain mechanic's lien, artisan's lien and materialman's lien as covered on the CPA exam.
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Mechanic's Liens and Artisan's Liens are legal tools used to ensure payment for work done on property. Here's a simplified explanation and an example to illustrate these concepts:

Mechanic's and Artisan's Liens: These liens are created when a mechanic, artisan, or similar professional works on property, either improving or repairing it. The key point is that the professional has a lien (a legal claim) on the property for the cost of their work, but this lien is only valid while they have possession of the property. Once they return the property to its owner, the lien dissolves.

Example: Imagine you take a broken antique clock to a skilled artisan for repair. Once the artisan has repaired the clock, they have a lien on it for the cost of the repair. They can keep the clock until you pay. However, if they return the clock to you without receiving payment, their lien disappears.

Materialman's Lien: This type of lien is relevant in the construction industry. Contractors or suppliers (materialmen) who provide labor or materials for real property improvements can claim a lien on the property. However, to preserve this lien, they must file a notice with the local recorder of deeds.

Example: Suppose a contractor supplies bricks for constructing a new house but hasn't been paid. The contractor can file a materialman's lien against the property, essentially claiming a legal interest in the property to the value of the unpaid bricks. This lien remains until they are paid or until legal action is taken to resolve the issue.

In both cases, these liens are a way for workers and suppliers to ensure they're paid for their services or materials. If payment isn't made, they have legal options like selling the retained property or initiating legal action to recover their costs.



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