A mechanic’s lien is a security interest in real or personal property that is acquired by someone who adds material or labor to improve the property. A mechanic’s lien usually remains in effect until the lien holder (the auto repair shop) is paid for the material or labor added to the property. For a movable piece of property like a car, the property owner’s failure to pay the auto repair shop for material or labor may allow the auto repair shop to keep possession of the car until the owner pays for the material and labor. In the auto repair context, a mechanic’s lien is sometimes called a garageman’s lien.
In Texas, a mechanic's lien, also known as a garageman's lien in the context of auto repairs, is a legal claim against a vehicle for unpaid repairs or improvements made by a mechanic or repair shop. Under Texas Property Code, specifically Chapter 70, mechanics and auto repair shops have the right to retain possession of a vehicle until they are paid for the labor and materials provided. The lien is perfected by retaining possession of the vehicle and does not require a written agreement, although a written contract can provide additional protection. If the vehicle owner fails to pay the debt, the mechanic may enforce the lien by selling the vehicle at a public auction after proper notice is given to the vehicle owner. The proceeds from the sale are used to pay the debt owed to the mechanic, with any surplus funds typically returned to the vehicle owner.
