What must be documented to protect against loss of a mechanic's lien?

To protect against the potential loss of a mechanic's lien, it is essential to ensure that a notice of lien is recorded in the public record. A mechanic's lien serves as a legal claim against a property to ensure payment for labor or materials supplied to improve that property. By documenting a notice of lien in the public record, contractors and suppliers publicly assert their right to the lien, giving them a legal basis to collect payment even if a dispute arises.

Recording the lien establishes priority against other claims on the property. This step is crucial because it informs all interested parties, including future buyers and lenders, of the outstanding claim, thereby safeguarding the lien claimant's rights. Without this public notice, there’s a risk of the lien being deemed unenforceable, particularly if the property changes hands or additional liens are placed on it.

To summarize, documenting a notice of lien in public records ensures the legitimacy of the claim and provides a necessary safeguard for those who have contributed to the improvement of the property, thereby protecting their financial interests.