Property liens are defined as a charge on property to satisfy a debt or other obligation. An owner may agree to place a lien on real property in order to obtain mortgage financing to purchase the property.
Do you have any property lien disputes? Contact a Real Estate Lawyer for successful resolution of all property liens that you may be concerned with.
A lien on real property may also result from a debt of the property owner that is not directly connected to the ownership of the land. Examples include:
- Unpaid federal and state taxes, such as income tax, sales taxes, and the like, may become a lien on the taxpayer’s property if the taxing authorities follow certain procedures.
- Depending on state law, unpaid child support may be a lien on real property.
- The court in a divorce case may award one spouse ownership of the marital home, but grant the other spouse a lien on the property to the extent of the spouse’s interest in the property at the time of the divorce.
If a debtor owner fails to pay a debt, and the creditor goes to court and obtains a judgment, the law usually permits the creditor to file that judgment in the land records so that it becomes a lien on the debtor’s real property. If the debtor sells the property without satisfying the lien, the lien isn’t discharged and it may still be satisfied by a sale of the property, even after it’s been sold to a new owner. In most transactions, a bank or other mortgage lender will not provide mortgage financing until all liens on the property have been removed.
A worker or business supplying building materials may have a mechanics' and materialness’’ lien for the construction or improvement of real property.
The laws governing the rights of contractors to place a lien on real property vary greatly from state to state, but they usually share some basic features. The contractor has the right to file a form (a lien claim or notice of lien) in the land records when payment is not made for materials or services provided for the improvement of real property. The claim becomes an encumbrance on the property. In some states, the contractor is required to file a notice of lien prior to commencing work on the property or supplying materials.
Remember any unpaid debt could be filed as a lien against your property. If left unpaid, interest may be continually compounding.
Do you have any property lien disputes? Contact a Real Estate Lawyer for successful resolution of all property liens that you may be concerned with.
Content Related to Topic
A real estate attorney can give a legal advice to assist you in your property liens matters.
Find a Real Estate Attorney
|
