Liens
What is a lien?
A lien is a charge on real or personal property for the satisfaction of a debt or legal duty.
What are judgment liens?
If a person wins a lawsuit for money, the court will enter a judgment stating the amount of money the losing party owes to the winning party. After a judgment is entered, the winning party can file a judgment lien. By filing a judgment lien, the winning party has a charge on all of the losing party's personal property located anywhere in the state. The winning party can obtain a judgment lien on the losing party's real property by recording a certified copy of the judgment with the county in which the real property is located. Judgment liens on personal and real property can be enforced during the time period allowed by law. For example, in Florida, judgment liens on personal property are valid for 5 years; judgment liens on real property are valid for 10 years. They can be continued for another 10 years.
What are mechanics' liens or materialmen's liens?
Individuals and businesses that make improvements to real property are given special collection rights by law. Craftsmen, laborers, suppliers, architects, engineers, contractors, and subcontractors fall within the definition of mechanics or materialmen. If the mechanics or materialmen have not been paid, they can place a lien on the real property for the value of the work performed or the materials provided. The general procedure for a lien includes written notice to the property owner and recording of the lien in the county real estate records. If the lien is not paid, the mechanic or materialman can file foreclosure proceedings and sell the land in order to pay the debt.
What are tax liens?
If a property owner fails to pay property taxes or income taxes when they become due, the government can impose a tax lien on the real estate. If the taxes remain delinquent (unpaid), the property can be sold to pay the debt.
Copyright 2006 LexisNexis, a division of Reed Elsevier Inc.
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