Liens

A lien is a legal claim or encumbrance against real property that is used as security for the payment of a debt or obligation.

• Does not transfer title
• Gives the lienholder the right to foreclose
• Attaches to the property, not the owner
• Can be voluntary or involuntary
• Must usually be recorded to give public notice

• Voluntary Liens
  • Created by the property owner
  • Examples: mortgage, deed of trust

• Involuntary Liens
  • Created by law
  • Examples: property tax liens, judgment liens, mechanic’s liens

• General Lien
  • Attaches to all property owned by the debtor
  • Example: judgment lien

• Specific Lien
  • Attaches to a specific property
  • Examples: property tax lien, deed of trust

• Generally determined by date of recording
• Property tax liens take priority over all other liens
• Special assessments (e.g., Mello-Roos) may have priority

• Payment or satisfaction of the debt
• Foreclosure
• Release or reconveyance
• Expiration (statute of limitations)

• A lien is a claim, not ownership
• Priority determines who gets paid first