Different Types Of Liens

Liens play a crucial role in making sure that debts are paid. They are a legal claim or right against a property and can significantly impact property ownership and the transfer process. 

There are several kinds of liens to be aware of:

Consensual (Voluntary) Liens

These liens are agreed upon by the property owner usually because of a loan or other financial agreement. 

For example if you use your house as collateral for a loan that you take out, if you don’t pay back the loan, then the lender has the right to foreclose on the property in order to recover the amount you owe. 

Statutory (Involuntary Liens)

These liens are imposed without consent usually because of unpaid obligations. 

These liens are placed by contractors, subcontractors, or suppliers who provide materials or services and they have not been paid. This allows them to seek compensation for the debt that is owed to them. 

Judgement Liens

These liens come from court judgments and allow the creditor to claim the property of the debtor in order to satisfy a legal judgment. 

Liens make sure you have the means to still get paid if someone isn’t paying. Make sure you get paid. Let Lien Counsel be your partner in all things liens.