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 Alaska, a mechanic's lien, also known as a garageman's lien when it pertains to auto repairs, is a legal claim against a vehicle for unpaid repairs or improvements made by an auto repair shop or mechanic. Under Alaska Statutes Section 45.29.501-507, a mechanic's lien gives the repair shop the right to retain possession of the vehicle until the owner pays for the services and materials provided. The lien is typically perfected by retaining possession of the vehicle and may require additional steps such as notifying the owner of the lien and possibly filing the lien with the appropriate state agency. If the vehicle owner fails to pay the debt within the specified time frame, the repair shop may be able to sell the vehicle to recover the costs after following the proper legal procedures, which include notice requirements and potentially a court order.