What is the term for the legal right of a contractor to file a lien against the property where work was performed?

The term for the legal right of a contractor to file a lien against the property where work was performed is known as mechanics' liens. This legal mechanism allows contractors, subcontractors, and suppliers to ensure that they get paid for the work they have completed or materials they have provided for construction or renovation projects.

When a contractor files a mechanics' lien, they are asserting a claim against the property to secure payment, effectively encumbering the property. This lien remains in effect until the obligation is fulfilled or the lien is removed through legal processes. Furthermore, mechanics' liens can be particularly powerful as they often grant the lienholder the ability to force a sale of the property to satisfy the debt if payment is not made.

Each of the other options pertains to different legal concepts. Bankruptcy involves the legal process for individuals or businesses that are unable to repay their debts. Foreclosure is a legal process by which a lender reclaims property due to the borrower's failure to repay a mortgage. Lis Pendens denotes a notice that there is a pending legal action involving a property, which serves to inform prospective buyers or financiers that the property is subject to litigation. These concepts are distinct and do not provide the same specific rights regarding payment for construction work as mechanics' liens