Liens arise under an operation of law, by Statute or contract. A contractual lien can afford protections and rights. Statutory liens can provide a benefit to parties to a transaction to convince parties to be able to come together to close a deal.
We represent clients seeking to impose a lien on real estate as well as those who are trying to address a lien imposed upon their property.
Placing a Lien on Real Estate. There are many reasons why a lien could be placed upon real estate. But it is first important to understand what a lien upon real estate is. Generally, a lien is a claim or right upon the real estate to satisfy an obligation due. Placing a lien on someone’s real estate property, whether it be commercial or residential, involves filing papers to recognize the lien right. It may be necessary to record a lien with the county recorder’s office where the real estate is situated. A recording fee may also be involved. The origination of a lien has many sources. There are consensual voluntary liens such as an agreed upon the mortgage, or involuntary liens. For example, a contractor performing work may have a lien for unpaid work, labor or materials provided. Or a judgment in a lawsuit could result in a lien upon real estate. And the county or city may have a lien upon the property for unpaid code violations or other reasons.
Dealing with a Real Estate Lien. If there is a proper lien upon the real estate, commercial or residential, it should be timely dealt with by the owner. If not, then the lien could be foreclosed upon and the property lost in a judicial sale. How to address the lien depends upon how it was originated.
Foreclosing Upon a Real Estate Lien. A lien may be foreclosed upon. This is done through a lawsuit filed in the court where the real estate is located. The lawsuit, a foreclosure case, proceeds under the law of foreclosures. Where there is a contract that consented to the lien such as a mortgage instrument, there may be written terms that must also be complied with.
Our law firm represents both the lien holder and those seeking to legitimately defend against the lien or its foreclosure.