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 North Dakota, 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 North Dakota Century Code (NDCC) 35-01 and 35-20, mechanics and repair shops have the right to retain possession of a vehicle until they are compensated for the labor and materials provided. The lien is typically perfected by retaining possession of the vehicle and may require additional steps such as notifying the owner and filing a claim with the appropriate state agency or court. The lien remains effective until the debt is paid or until it is resolved through legal action. If the vehicle owner fails to pay the debt, the mechanic 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-ordered sale.