What Is a Mechanic’s Lien?

What Is a Mechanic’s Lien?

A mechanic’s lien is a legal claim, or security interest, that is created when a mechanic, tow company, storage facility, or another worker does work or provides a service on a vehicle, and they are not paid as agreed. If there is an unpaid debt for commissioned work or a service performed, the service provider can obtain a mechanic’s lien (also known as a garageman’s lien). A mechanic’s lien is a statutory lien as it arises by operation of law. Each state has different mechanic’s lien laws. These laws regulate the time frame for these liens and the process for resolving the unpaid debt.

A mechanic’s lien is also a type of possessory lien. That means that service providers like towing companies or mechanic shops can retain possession of the vehicle if the work or the services they provided are not paid for. Some state laws give service providers that have a mechanic’s lien the right to sell the vehicle at a public auction or in a private sale. The sale proceeds are used to pay off or recoup the unpaid debt.

In order to place a mechanic’s lien on a motor vehicle in some states, the service provider must:

• Complete an application form and provide documentation of the services rendered,
• Give notice to the vehicle owner and the lienholder, and
• Provide proof of a valid past-due debt after the time required by state law.
• A signed repair authorization.
• An executed storage contract.
• A certified letter with return receipt requested to the vehicle owner notifying them that the service provider intends to place a lien on the vehicle.
• A certified letter to the lienholder notifying them that the service provider intends to place a lien on the secured property.
• Copies of invoices and work orders submitted to the vehicle owner indicating there is a past-due debt, along with related call logs, mechanic’s notes, emails, or letters.

Some states, like Florida, allow a mechanic’s lien to become effective when the vehicle owner is given an invoice or 3 days after repairs are completed, whichever comes first. But before the Florida service provider actually sells the vehicle, they have to apply to the Clerk of Courts for the county and the Florida DMV for authorization to enforce the mechanic’s lien and sell the vehicle.

State law varies on licensing requirements for service providers to obtain a mechanic’s lien. Usually, a tow company, storage company, repair shop, or auto mechanic must be licensed and bonded to actually obtain and enforce a mechanic’s lien. But there may be some exceptions that vary by county.

At Florida Lien Services, LLC we handle the whole process. Email your shop work order or tow ticket to info@FloridaLienServices.com and we will start the process that leads to a title under the shop’s name or the money owed for services rendered, within 60 days.