What Can Property Liens Be Filed For?

A lien is a legal claim that attaches to a particular piece of real estate. If the real estate is sold or otherwise transferred, the lien must be paid off in order for the real estate title to be clear. You can file to have a lien placed on real estate for a variety of reasons. The most common reason to have a lien filed against real estate is to secure payment of an obligation. For instance, a contractor might file a mechanic's lien against real estate on which he or she has performed work, but has not been paid.

Real Estate Property Liens

• Contractor's Lien / Mechanic's Lien / Construction Lien – This is a lien that is filed against real estate by a contractor or subcontractor that has performed work on the property, but has not yet been paid for the work.
• Mortgage Lien – The purpose of this lien is to secure payment of a mortgage loan that has been taken out by a borrower in order to purchase a piece of real estate.
• Judgment Lien – If you win a judgment against a person who owes you money, your judgment can become a lien on any real estate that the person owes.

Lien Filing Process

While the exact procedures for filing a lien against real estate differ from state to state, and even may differ among counties in a single state, you typically must file a lien by registering your judgment or mortgage with the office of land records in any county in which the debtor owns real estate. Once you correctly file a lien, it is referred to as a "perfected" lien, which means that it is properly attached to the real estate. However, it is important to keep in mind that your lien will be secondary or inferior to any other liens on the real estate that have previously been perfected. Thus, if the real estate is sold, any superior liens will be satisfied before your lien is paid off.

Establishing a judgment lien or collecting a debt via real estate lien can be complex, and may involve complicated court procedures. Therefore, it would be helpful to retain an experienced real estate and/or collections attorney so as to ensure that all procedures are followed correctly.