Are you owed money on a judgment and want to secure your payment by putting a lien on the debtor’s property? Understanding how to put a lien on a property is essential for creditors seeking to protect their financial interests. This comprehensive guide will walk you through the process, explain the types of property liens, and clarify the legal requirements involved.
Putting a lien on a property involves several key steps. You must first obtain a judgment before you may put a lien on real property, unless you are pursuing a mechanic’s lien claim. Follow this guide to ensure your lien is legally valid and enforceable.
Before filing a lien, confirm that the debt owed is legitimate, and you must file a lawsuit seeking a court judgment. Collect evidence such as:
Having clear documentation strengthens your claim and is often required by law.
You must sue the Debtor and obtain a final judgment in court. The Debtor must be served with the lawsuit. All applicable laws and procedures must be followed. It is highly advisable to seek the help of an attorney for this process.
Lien laws vary by state and jurisdiction. Research the specific rules for filing liens in the county where the property is located. Important details include:
In some jurisdictions, you must notify the property owner once you have recorded a lien This notification informs the debtor of the unpaid debt and your judgment.
Complete the required lien forms accurately and submit them to the county recorder’s office or county clerk’s office. Filing the lien at the county recorder’s office is essential to officially notify interested parties of your legal claim on the property. The county recorder's office serves as the official repository for recording judgment liens and other legal documents that may affect property ownership or title.
In some cases, a notice of lis pendens may also be filed with the county recorder. A lis pendens, which means “pending action,” is a legal notice that alerts potential buyers or interested parties about a pending lawsuit or legal dispute involving the property before a final judgment or sale. It is dangerous to file a lis pendens without good cause because it clouds the debtor’s property title and could cause you to be sued for damages. Do not do this without first consulting a qualified attorney.
If the debt remains unpaid, you may enforce the lien through legal actions such as foreclosure. Enforcement procedures depend on the lien type and local laws. Foreclosure allows you to recover the debt by forcing the sale of the property.
Once the debt is paid, the lien must be removed to clear the property’s title. The property owner or debtor should:
If the lien is invalid or disputed, a court order may be required to remove it.
Without a proper lien release filing, the lien remains on the property title and can hinder sales or refinancing.
Liens can significantly complicate a property sale by clouding the title and making it difficult to transfer ownership. Buyers and lenders typically require a clear title, free of liens, before proceeding. Real estate agents and title companies perform thorough title searches to identify any existing liens.
If a lien exists on a house, sellers must resolve the debt or negotiate with lien holders to obtain a lien release before the property sale can proceed smoothly. Failure to address liens can delay or derail property sales, reduce buyer interest, and affect loan approvals.
Example 1 — Mechanic’s Lien (California): Must be recorded within 90 days of completing work unless a Notice of Completion shortens the deadline to 60 days.
Example 2 — Judgment Lien (Texas): Judgments attach to real property only when recorded in the county where the debtor owns property.
Example 3 — Tax Lien (Florida): Tax liens take priority over other creditors and may result in a tax deed sale.
Voluntary liens are placed with the property owner’s consent, such as mortgage liens. Involuntary liens are imposed without consent, often due to unpaid debts like taxes or contractor bills.
Only authorized parties such as judgment creditors, contractors, government agencies, or courts can legally place liens. Unauthorized liens can be challenged and removed through legal action.
The timeline varies by lien type and jurisdiction. For example, mechanics’ liens often have strict filing deadlines within 90 days of completion of the work.
The lien holder may enforce the lien through foreclosure, potentially resulting in the sale of your property to recover the debt.
You can perform a title search at the county recorder’s office or hire a title company or real estate agent to search.
