The term "Mechanics Lien" in international practice refers to the right of workers, suppliers, and contractors employed in construction to claim security over the real estate they improved if they have not been paid. Georgia does not have a direct equivalent (in the form of automatic registration), but legislation provides similar protective mechanisms. Specifically, a person who performed work or supplied materials has the right to request a court-ordered seizure (interim measure) of the property and subsequently its realization to cover the debt. This is a critical tool for builders to ensure their labor does not go unpaid.
Time is decisive in these types of disputes. If the property is sold to a bona fide purchaser, recovering the debt becomes extremely difficult. Therefore, builders and suppliers need immediate legal reaction — preparing a lawsuit and placing a lien/seizure before the developer or owner sells the assets. Legal.ge gives you access to lawyers who will help secure your right to claim payment for your work.
What Does Mechanics Lien Service Cover?
This service is designed for builders, workers, and material suppliers:
- Securing Rights (Seizure/Attachment): Court-ordered seizure of the property under construction or built, preventing the owner from selling it until the debt is paid.
- Filing a Lawsuit: Preparing a lawsuit demanding debt recovery against the contractor or property owner.
- Right of Retention: Legal advice on how to lawfully suspend works or retain the object/equipment until payment is received.
- Negotiation: Resolving the dispute out of court through a payment schedule or transferring part of the property (e.g., an apartment) in exchange for the debt.
- Document Organization: Analyzing contracts and acceptance acts to ensure a strong position in court.
Common Real-World Scenarios
Those employed in construction often face the following difficulties:
The first scenario is "Material Supplier." A company supplied concrete or rebar to a construction site, but the funds were not transferred. The construction company avoids payment. The supplier must freeze the construction company's accounts or property.
The second case is "Unpaid Wages." A crew of workers performed renovation works, but the client won't pay. If there is no written contract, witnesses and factual circumstances must be used.
The third scenario is "Barter." The developer promised to give an apartment to the contractor instead of money, but sold the apartment to someone else. This is a dispute containing signs of fraud, requiring criminal or civil litigation.
The fourth situation is "Sale of Object." The owner sells the building where renovation was done but doesn't pay for the renovation. Seizure is necessary to stop the sale.
Georgian Legal Framework and Regulations
Builders' rights are protected by:
- Civil Code: Norms of the Contract for Work and creditor rights.
- Civil Procedure Code: Rules for applying interim measures (seizure).
- Law on Enforcement Proceedings: Forced execution of decisions.
Process and Stages
The lawyer collects evidence (contracts, invoices, waybills). An application is immediately filed in court requesting the seizure of property or accounts. After the seizure, parties often start negotiations because frozen accounts or seized property hinder business. If an agreement is not reached, the case continues with a substantive hearing and ends with forced enforcement.
Why Legal.ge?
If you are a builder or supplier and aren't getting paid, waiting is a risk. On Legal.ge, you will find lawyers who will act quickly to protect your financial interests and use all legal levers to recover the debt.
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