How Do You Put A Lein On Someone's House That Owes You Money

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A lien gives yous a right in or over property as security for a debt someone owes you^[ane] While there are several unlike types of liens, as an individual you probably are filing either a mechanic'due south lien or a sentence lien. Mechanic'southward liens enable contractors to collect coin they earned doing work by encumbering the property they worked on until the debt is satisfied. A judgment lien allows you to secure the drove of a courtroom-awarded judgment at the completion of a lawsuit.^[2]

1. one

   Frazzle all other options. Filing a lien is a public annunciation that someone hasn't paid for contract work, and is a potent legal move to make. Before you lot jump straight to the determination that you want to file a lien, talk to the property owner and attempt to prepare up another plan.

   • Be clear from the offset of a chore that you'll file a lien if debts remain unpaid. Some states such equally Washington have forms y'all can use to notify holding owners of your right to file a lien if you aren't paid.^[3] You also tin can propose a property owner of your right to file a lien in your contract for the work.
   • If the property possessor agrees to a payment plan, make sure information technology has a reasonable due date and get the program in writing. For example, if you completed some work on your client'due south garage for $2,000, you may work out a payment plan in which your client agrees to pay y'all $500 a month for the next four months. You may want to hire a lawyer at this signal to aid you describe up an understanding.
   • You also might consider using alternative dispute resolution. With ADR, you and your client share the cost of hiring a neutral mediator who helps you lot piece of work out a mutually agreeable consequence. The process often is less adversarial, more than efficient and less expensive than filing a lien.^[4] Your local courthouse or your state court's website may accept a list of ADR resource available in your area.
   • Hiring a debt drove agency is another way to avoid the time and expense of engaging in formal legal processes by filing a mechanic'due south lien. Debt collections agencies specialize in recovering debts and can put the pressure on your client without you having to have legal action. If yous determine to become this route, enquiry and observe a drove agency that has a good reputation and specializes in working with people who exercise the same kind of piece of work you practice.^[5]

2. 2

   Brand sure you've given preliminary find. Most states crave you to notify the debtor that you volition file a lien if he doesn't pay you. Typically you would requite this detect within the first few weeks of work, earlier payment even becomes a problem. If you fail to give preliminary discover, you may lose your right to file a lien if your client doesn't pay.^[vi]

   • Some states require that yous use a specific form to provide notice. Check with your local clerk of courtroom'south office to notice out if your state has any specific requirements.
   • In most states, preliminary notice must be given within 10 to twenty days of the appointment you began work.^[7]

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3. 3

   Cheque your state's deadlines for filing a lien. Yous only take a brief menstruation of time later yous've completed the work to file for a lien, and in some states this period is as brusk as 60 days.^[eight]

   • Depending on where you live, you may not have fourth dimension to exhaust all other options before you file a lien if you lot want to preserve this choice. For example, in Louisiana you merely take sixty days from the solar day you end the work to file a lien for non-payment. This doesn't requite you much time to pursue culling methods of collection. Nevertheless, in neighboring Mississippi, you have a whole year from the appointment the debt became due. That gives you enough of time to explore other payment options with your customer.^[9]

4. four

   Inquiry the property. To file a lien on holding, yous must bear a championship search on the property to ensure your client owns information technology and get the full legal description from the deed. This process could cost several hundred dollars to complete.^[10]

   • In some states such every bit Illinois, full general contractors who file a lien earlier the deadline have priority over any other encumbrances on the belongings, fifty-fifty if another mortgage or a competing lien came first.^[11]
   • Other liens on property that would accept priority over yours could mean that even if you filed suit and had the belongings sold, you wouldn't recover whatever money and the debt would remain unpaid.^[12]
   • If there are other creditors who accept liens on the holding, y'all should consider consulting an attorney to suggest yous on how those loans are prioritized legally and whether you lot should pursue alternative ways of collection. ^[13]

5. 5

   Depict up your lien. A lien typically is a one-folio document with information near the creditor, the debtor, and the holding. Most states take specific court forms to fill out.

   • For example, California requires a Claim of Lien form as well as a notice and an affidavit.^[14] You tin acquire your country's requirements by contacting your local clerk of court.
   • Bank check the formatting requirements of the county where you're filing the lien, because many counties take strict rules governing the paper size, margins, and font of the text. If you don't follow these rules, the office will turn down your lien.^[15]
   • The type of information required on the lien also varies from state to state, merely typically includes your name and address, the name and address of your customer, the amount of money you are owed, a description of the blazon of piece of work or services yous performed, and the location of the belongings. ^[16]
   • Make sure you've included all necessary data or your lien won't exist whatsoever good. For case, if you're placing a lien on existent holding, most states require a legal property description such every bit the i on the deed, not just a street address.^[17]

6. vi

   File your lien. Your lien must be filed with either the property recorder'south function or the clerk of court. Each state designates a specific office to take filings of mechanic's liens, so brand sure you've got the right office.

   • If you're claiming a lien on real holding, it must be filed in the recorder'due south office of the canton where the property is located.^[eighteen]
   • Expect to pay a filing fee between $25 and $l depending on the location where you file.^[19]
   • Although you ofttimes can file your lien by mailing it to the office, yous may want to deliver it in person. Many offices have a backlog on mailed filings, so this is particularly of import if yous're filing close to the deadline. Additionally, filing in person ways if there's something wrong with your lien yous tin find that out and correct it immediately.^[20]

7. vii

   Notify all necessary parties. In most states you must notify the belongings possessor immediately afterwards yous file the lien. Some states require boosted parties, such as other lien holders, to exist notified as well. You can find out who must be notified when you lot file the lien.^[21]

   • In many cases, the holding owner volition make arrangements to pay the debt before long later on receiving notice that you filed a lien.

8. 8

   Enforce your lien. If the debtor still doesn't pay after yous've filed the lien, you must enforce the lien by filing a foreclosure lawsuit inside a certain amount of fourth dimension, usually a year.^[22]

   • The foreclosure accommodate causes the belongings to be sold. The proceeds of the sale are used to satisfy any liens on the belongings.^[23]
   • Make sure you bank check your state police force to run across what your enforcement menstruation is. After the enforcement period runs out your lien is expired and has no value. Some states accept extremely short enforcement periods. For case, in California you have merely xc days to file a lawsuit after filing your lien.^[24]
   • Because filing a foreclosure suit involves filing a formal complaint in court and following the courtroom's rules, you should consider hiring an attorney who specializes in foreclosures or in enforcing mechanic's liens.

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1. one

   Understand whether yous're eligible to file a judgment lien. You tin only file a judgment lien after you've won a court judgment in a example in civil court. The judgment lien allows you to sell the real or personal holding subject field to the lien and utilize that money to satisfy the debt owed to y'all.^[25]

   • A judgment lien does not ensure payment of a judgment. The lien attaches to the debtor's real or personal property, informing potential buyers that the championship of the holding is not clear. If you identify a judgment lien on someone'southward property, there's a chance you lot won't receive your money until that person decides to sell that property.

2. 2

   Learn the rules for judgment liens in your state. Different states accept different procedures for getting judgment liens and for maintaining them. If you aren't familiar with those rules you could cause your lien to expire.

   • Generally, you can just place a lien on personal property located in the country where the judgment was obtained.
   • The lien is but adept for a certain menses of fourth dimension. For example, in states such as California and Arizona, your lien is good for 5 years, but may be renewed if yous oasis't been paid within that fourth dimension.^[26]
   • If the debtor sells or transfers the belongings while the lien is in issue, the judgment lien remains on the belongings until the creditor has been paid in full.

3. 3

   Draft the relevant documents. If you're eligible to file a judgment lien, observe out what documents you need to file, where yous demand to file them, and what fees will exist charged.

   • Some states have a grade you tin fill out. For case, if you want to file a lien in California on personal property such as a car or a boat, you would make full out a "Notice of Judgment Lien, Course JL-1" and file it with the California secretary of state.^[27] If you wanted to identify a lien on existent holding, on the other hand, y'all would fill out and record an "Abstract of Judgment for Civil and Pocket-sized Claims" course at the county recorder'southward part.^[28]
   • In some states, such every bit Arizona, your lien must be accompanied past a certified re-create of your court judgment. You can become a certified re-create for a fee from the clerk'south function in the court where yous were awarded the judgment.^[29]

4. four

   File your documents. Where you file your documents depends on where the holding is located and whether yous're attaching your lien to real or personal property. Each country has different filing rules, and the same state may have carve up offices and procedures for existent and personal holding.^[30]

   • Typically yous can mail your documents to the correct office forth with the fee to file them, but as with the mechanic's lien it may exist in your best interest to file them in person so yous know the lien is recorded and y'all can right any defects in your forms immediately.^[31]

5. 5

   Wait for the debtor to satisfy the judgment. A sentence lien does non guarantee payment of the debt. Rather, you have to look until the debtor sells the belongings. If the heir-apparent wants a clear title, she will insist the debtor satisfy the judgment earlier she completes her purchase.

   • While there'south no constabulary that requires liens to exist cleared before property is sold, in nearly cases potential buyers want a clear title, non a property that's encumbered with someone else's debts.^[32]
   • In some states such as California, if the debtor pays the judgment, you must remove the lien by filing a form with the courtroom that acknowledges satisfaction of the judgment.^[33]

6. six

   Pursue other options to recover the debt. If the debtor still doesn't pay, in that location are other legal options at your disposal to collect the debt, such equally wage garnishments or bank levies. Speak to a collections attorney to become a better idea of the options available in your country.

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• In some states, subcontractors may non file liens without the approval of the chief contractor. Other states also only allow contractors who are properly licensed in the land to file liens in that state.^[34]

• In a few states, if you win a lawsuit, a judgment lien automatically is created and attaches to whatever property the debtor owns in the state.^[35]

• Because you tin't force a sale of property if you have a judgment lien, it may take a very long time to get your money. Additionally, if the owner files for bankruptcy, your lien might be wiped out completely.^[36]

• Most states provide homeowners with a homestead exemption on the equity in their primary residence if the property is sold to pay off foreclosed mortgages or other liens. This could limit your ability to go your money if you lot file your lien on the holding owner'due south primary residence.^[37]

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Article Summary Ten

To file a mechanics lien, notify the debtor several weeks beforehand that you plan to file a lien if you aren't paid. Check with your local clerk of court's office to find out if your state has a specific class for this. Side by side, draw upwards the Claim of Lien according to your state's format requirements, then file the paperwork with either the belongings recorder's office or the clerk of court within sixty days of notifying the debtor. To learn about filing a judgement lien, read on!

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Source: https://www.wikihow.com/File-a-Lien

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