Who can legally place a lien on my property?

A creditor can legally place a lien on property for a variety of reasons. Creditors can place a lien against a certain property owned by a debtor as security for a debt, according to Nolo. Some of the most well-known creditors are a mortgage company or bank. When the property owner purchases a home or building, he agrees to a security interest. For example, mortgage and equity lines of credit are types of liens because the debtor pledges their property as collateral.

A debtor doesn’t have to agree to a lien on his property. A nonconsensual lien is liens placed on the property without his consent. For instance, one creditor is the county where the debtor lives. The lien, called a property tax, is legally placed on the property. The debtor acquires this lien when he purchases or receives the property and continues as long as he owns the home or building.

Another creditor is a company who provided a service for the debtor. For instance, a contractor who worked on the debtor’s property can legally place a lien on the property if he doesn't receive payment. This is called a mechanics’ liens. The creditor, like a credit card company or individual, can sue and obtain a judgment against the property owner. The lien against the property must be paid before the property owner can sell his house or building. Therefore, it’s important to talk to a real estate lawyer to find out how to fight or eliminate a lien.