Estate Lien Is A Form Of Safety Interest
What is a lien?
A form of safety interest allowed over a property is known a lien. It is put up in order to protect the debt imbursement or some other commitment. The one, who endows the lien, is known as lienor and one getting the benefit is known as lienee.
But one thing should not be forgotten that a lien is totally submissive. It means that, once you out a lien it doesn't ensure you that you get the money then and there because many a time, property attached liens shift hands or are refinanced!
How to Create a Real Estate Lien
A lien can be created on any real estate which is owned by a debtor. All he or she has to do is just register his or her judgment to the office maintaining land records in the county in which the real estate is owned by him.
Limits of Real Estate Lien
One of the major limits of the real estate lien is that, unless the owner of the property refinances or sells and anybody who put up a lien in advance of you is paid, you won't be paid. You will only be paid if there is adequate equity in the assets, but you should not count on it because chances are less for this! One of the other major limits of real estate lien faced by you is when you affix an estate lien to the principal home of the debtor. Now, if the debtor announces bankruptcy publicly, then one more problem is lined up for you. The debtor gets a range of ways to deal liens with the bankruptcy code. "Lien avoidance" is one such way in which the debtor can completely wash out the estate lien. Property Can Be Transferred Without Removing Estate Liens
This is one point which is hardly known by many! To transfer or sell a property to which a lien is attached, it is not required to remove the lien but if the person buying the property wants finance to buy the property then only it is required to clear the lien. Estate Liens on Jointly Owned Property
But if a property to which lien is attached, is jointly owned by two or more people, then it depends on the joint ownership form, that how the lien will be treated. So in case, you want to find out before purchasing the property, about the ownership of the property, you can check with the record office of the county. Estate Liens on property in common tenancy
Now, if the deed of the county doesn't identify a property in joint ownership, then the property to be bought is taken to be held in tenancy in common. The real estate liens varies from place to place and how the lien will be treated depends on the type of ownership of the property to which the lien is attached, so before buying a property it is essential to have the complete information about the county's laws and the ownership of the property.
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