It is critical to know about liens and their possible effects when purchasing or selling property. A lien is a claim or right on the property. It serves as security for a debt or obligation, whether monetary or legal.
The lien holder has the legal authority to foreclose on the property and sell it to collect on the debt. In this blog, we’ll discuss various types of liens, their origins, and the potential implications when buying or selling property.
What Is The Difference Between General And Specific Liens?
When a debtor has a general lien, that lien is placed on all of their assets. If you have back federal income taxes, for instance, the government can place a lien on all of your property. On the other hand, a specific lien covers a single asset. Liens like mortgages, which are exclusive to the mortgaged property are distinct in nature.
What Are The 5 General Kinds Of Property Lien?
Here are the types of liens:
Property Taxes Lien:
It is a lien put by the government on a property in case the owner fails to pay property taxes. Failure to satisfy a lien for unpaid property taxes can result in a foreclosure auction of the property and the seizure of any and all personal assets located on the premises.
Judgment Lien:
When you are on the losing side of a lawsuit, the court imposes a judgment lien on your property. This is done to satisfy the cash payment owed to the prevailing party in the case.
An associated court puts a lien to secure the payment of a judgment. Any creditor who has pursued legal action against the landowner in court may be eligible to get this form of a lien.
Mostly, the person who gets benefit from the judgment is the one who is responsible for recording it.
Mortgage Lien:
Lenders put a lien on a property to ensure repayment of a loan, protecting themselves from potential non-payment. If the borrower is unable to keep up with their payments, the lender has the right to sell the property to recoup the money.
Attachment Lien:
During a court dispute, it is common for a property owner to face restrictions on selling their home due to the imposition of an involuntary attachment lien.
Corporate Franchise Tax Lien:
Businesses are subject to a fee for the privilege of conducting operations within the state. If this tax is not paid, a tax lien may be filed.
In summation
Creditors or government agencies place liens on a property as a type of security interest to ensure payment of a debt.
Property tax liens, judgment liens, attachment liens, mortgage liens, and corporate finance tax liens represent just a few examples of the many various liens that individuals can file against a property.
To ensure a smooth real estate transaction, it’s essential to conduct a title search to uncover any liens on the property. This process helps to resolve any issues before closing the deal.
What Are The 5 General Kinds Of Property Lien?
Here are the types of liens:
Property Taxes Lien:
It is a lien put by the government on a property in case the owner fails to pay property taxes. Failure to satisfy a lien for unpaid property taxes can result in a foreclosure auction of the property and the seizure of any and all personal assets located on the premises.
Judgment Lien:
When you lose a lawsuit, a judgment lien is placed on your property, which was made against you to pay cash to the winning party involved in the case.
An associated court puts a lien to secure the payment of a judgment. Any creditor who has pursued legal action against the landowner in court may be eligible to get this form of a lien.
Mostly, the person who gets benefit from the judgment is the one who is responsible for recording it.
Mortgage Lien:
Lenders put a lien on a property to ensure repayment of a loan, protecting themselves from potential non-payment. If the borrower is unable to keep up with their payments, the lender has the right to sell the property to recoup the money.
Attachment Lien:
During a court dispute, a property owner often experiences restrictions on selling their home due to the imposition of an involuntary attachment lien.
Corporate Franchise Tax Lien:
Businesses are subject to a fee for the privilege of conducting operations within the state. If this tax is not paid, a tax lien may be filed.
In summation
Creditors or government agencies place liens on a property as a type of security interest to ensure payment of a debt.
Property tax liens, judgment liens, attachment liens, mortgage liens, and corporate finance tax liens represent just a few examples of the many various liens that individuals can file against a property.
To ensure a smooth real estate transaction, it’s essential to conduct a title search to uncover any liens on the property. This process helps to resolve any issues before closing the deal.
What Are The 5 General Kinds Of Property Lien?
Here are the types of liens:
Property Taxes Lien:
It is a lien put by the government on a property in case the owner fails to pay property taxes. Failure to satisfy a lien for unpaid property taxes can result in a foreclosure auction of the property and the seizure of any and all personal assets located on the premises.
Judgment Lien:
When you lose a lawsuit, a judgment lien is placed on your property, which was made against you to pay cash to the winning party involved in the case.
An associated court puts a lien to secure the payment of a judgment. Any creditor who has pursued legal action against the landowner in court may be eligible to get this form of a lien.
Mostly, the person who gets benefit from the judgment is the one who is responsible for recording it.
Mortgage Lien:
It is a lien that is put on a property in order to ensure payment of a loan. This is done in order to protect the lender from not being paid back. If the borrower is unable to keep up with their payments, the lender has the right to sell the property to recoup the money.
Attachment Lien:
It is common for a property owner to be prevented from selling their home during the pendency of a court dispute by having an attachment lien imposed against it involuntarily.
Corporate Franchise Tax Lien:
There is a fee imposed on businesses for the privilege of doing business inside the state. Here, a tax lien may be filed when this tax is not paid.
In summation
Creditors or government agencies place liens on a property as a type of security interest to ensure payment of a debt.
Property tax liens, judgment liens, attachment liens, mortgage liens, and corporate finance tax liens represent just a few examples of the many various liens that individuals can file against a property.
To ensure a smooth real estate transaction, it’s essential to conduct a title search to uncover any liens on the property. This process helps to resolve any issues before closing the deal.
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