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 Iowa, a mechanic's lien, also known as a garageman's lien in the context of auto repairs, is a legal claim against a vehicle by an auto repair shop for unpaid repairs. Under Iowa Code Chapter 579, mechanics and other service providers can assert a lien for labor, material, or storage provided to a vehicle. To perfect the lien, the mechanic must follow specific procedures, including serving notice to the owner and filing a verified statement of account and lien with the county recorder within a certain time frame after the repairs are completed. If the vehicle owner fails to pay the debt, the mechanic may enforce the lien by selling the vehicle after giving proper notice and following the legal process for a public sale. The proceeds from the sale are used to pay the lien amount and any surplus is returned to the owner. It's important for both vehicle owners and repair shops to understand their rights and obligations under Iowa's mechanic's lien laws to ensure proper legal procedures are followed.