Hey friend,
Just like you, I was not aware of types of liens real estate. To be honest, I didn’t know the meaning of the term ‘lien’ either. I asked friends of mine if they were aware of the term. Most of them shook their heads no. Lien is a claim which can be put on one’s asset or property as a form of security to ensure the repayment of loan money by the borrower.
What is lien in real estate?If the debts to the lender aren’t paid, they can legally claim an asset as a security. This is called a lien. Usually, lien especially property needs to be filed and verified by the appointed state agency.
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Real estate tax lien are categorised into four : Judgement lien :When an asset is put on a lien because of legal action like a lawsuit, it is referred to as a judgement lien.
Mechanic’s lien :When an asset is put on a lien because the property owner hasn’t paid the contractor., it is referred to as a mechanic’s lien.
Real estate lien :When an asset is put on a lien because the real estate property owner hasn’t fulfilled the terms of a contract aka non-fulfilment, it is referred to as a real estate lien.
Tax liens :When an asset is put on a lien because the real estate property owner/ taxpayer hasn’t paid taxes to the authorities, it is referred to as a tax lien.
You should know how a lien works after knowing liens definition real estate. Claim on property in lien is granted by the court. The rules of which differ from one state court to another. A property lien is granted in case of immovable property like a house/ flat and car, boat, or equipment.
I hope your doubt on the types of liens real estate has been resolved.
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What is lien in real estate ?
Utkarsh
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1 Answers
2 Year
2022-06-08T18:43:06+00:00 2023-08-08T14:58:36+00:00Comment
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