Which entity may file a mechanics lien?

• A. A neighboring homeowner
• B. The lender
• C. The city
• D. A contractor or supplier who performed work or supplied materials

Answer: (D)

Mechanics liens go to those who actually contributed to improving the property by performing work or supplying materials under a contract. That security interest is intended to ensure payment for labor and materials that enhanced the real property. Because of that, the right to file a mechanics lien belongs to a contractor, subcontractor, or material supplier who performed work or provided materials for the project. A neighboring homeowner does not provide labor or materials to the project, so they don’t have a mechanics lien. The city is a public entity that issues permits and enforces codes, not a party seeking payment for the project. The lender finances the project and holds a mortgage, but unless they actually supplied labor or materials (which is uncommon for a lender), they aren’t the ones who file a mechanics lien. Therefore, the entity that may file is a contractor or supplier who performed work or supplied materials.