What is the lien rule?
Asked by: Alayna Abshire | Last update: January 28, 2026Score: 4.2/5 (9 votes)
A "lien rule" isn't a single universal law but refers to the various legal principles governing liens, which are a creditor's legal claim against a debtor's property to secure a debt, allowing the creditor to seize and sell the asset if the debt isn't paid, preventing the owner from selling the property until the lien is satisfied. These rules establish when a lien attaches (voluntarily like a mortgage or involuntarily by law like a tax lien), its priority (often by recording date, except for tax liens), and how it's enforced, with specific state laws governing construction, property, and tax liens.
What is a lien in law in simple terms?
A lien is a legal claim or right made by a creditor against an asset or property used as collateral to secure a debt. The primary purpose of a lien is to ensure that the underlying obligation, such as a loan repayment, is fulfilled.
What is the lien law in Georgia?
Georgia lien law protects contractors, subcontractors, and suppliers by allowing them to place a claim (lien) on improved property for unpaid labor or materials, requiring preliminary notices (within 30 days of first work/delivery) and timely filing (within 90 days of last work/delivery) and enforcement (within 365 days) of the lien, with strict deadlines and specific notice requirements, including for lien waivers, which can alter enforcement periods.
How long is a lien valid in Kentucky?
The lien is effective from the date on which the security interest is noted on the certificate of title for a period of ten (10) years, or in the case of a manufactured home for a period of thirty (30) years or until discharged.
What is the lien law in Florida?
ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN.
What Is Lien In Contract Law? - CountyOffice.org
Can someone put a lien on your property without you knowing?
Yes, a lien can be placed on your house without you knowing, especially with involuntary liens like tax liens, mechanic's liens from unpaid contractors, judgment liens from lawsuits, or child support liens for overdue payments, as these don't always require direct notice before filing in public records. While you might not be directly notified immediately, the lien is recorded publicly, and you often discover it when selling or refinancing, but you can check your county recorder's office for public records to see if any exist.
What is the 723 law in Florida?
Florida Statute Chapter 723 governs Mobile Home Park Lot Tenancies, establishing specific rights and responsibilities for mobile home owners and park owners, focusing on lot rentals for homes where the owner owns the mobile but not the land, with key provisions addressing unreasonable rent, rules, eviction procedures, and dispute resolution, applying primarily to parks with 10 or more lots. It provides protections against discriminatory rent hikes, requires mediation for major changes, and outlines grounds for eviction, ensuring fair practices in these landlord-tenant relationships.
What are the conditions for lien?
To establish a valid lien, you generally need an underlying debt, a legal basis (like a contract or statute), proper notice to the property owner (often a preliminary notice), adherence to strict deadlines for filing (which vary by state, often months after work ends), and specific documentation detailing the work, property, and amounts owed, all filed correctly with the relevant authority. Key conditions include proving you're a qualified claimant (e.g., licensed contractor), performing work/supplying materials that benefit the property, and following precise procedural steps, or the lien rights can be lost.
Does it cost money to release a lien?
Your county clerk's office charges a fee for processing the release of the lien on your property. Your payoff quote will show this fee, which you're required to pay to close your home equity line of credit.
What happens to a lien after 10 years?
If a tax debt has expired, the tax lien expires with it. If you have owed a tax debt for over a decade, and all applicable tolling periods have run out, the IRS cannot issue a tax lien for it – because the debt is no longer valid. However, don't hold your breath.
Can you go to jail for a lien?
No, you generally cannot go to jail for having or not paying a debt with a lien, as it's a civil matter; however, you can face jail time if you ignore a court order related to the debt (like failing to appear in court or pay child support) or if you file a fraudulent lien, which can lead to criminal charges. A lien itself is a creditor's legal claim on your property to secure repayment, not a criminal offense.
What is the 183 day rule in Georgia?
A Georgian resident for the entire current tax year shall be a natural person who has actually stayed in the territory of Georgia for 183 or more days in any continuous 12-calendar-month period ending in that tax year, or a natural person who was in a foreign country in the public service of Georgia during that tax ...
Can I put a lien on my own property?
A property owner can choose to place a lien on their property. A voluntary lien is a claim over the property that a homeowner agrees to give to a creditor as security for the payment of a debt. A mortgage lien is the most common type of voluntary real estate lien, also called a deed of trust lien in some states.
What are the three types of liens?
Of the three types of liens (consensual, statutory, and judgment), the judgment lien is the most dangerous form, but one which the informed business owner may be able to eliminate. A judicial lien is created when a court grants a creditor an interest in the debtor's property, after a court judgment.
Who is responsible for paying a lien?
For involuntary liens, the property owner must pay their creditor what they owe, draft a lien release document, and have the creditor sign it before having the lien release document recorded in the county public records.
What exactly does a lien do?
A lien is a legal claim against your property or assets that is used as collateral to satisfy a debt. Courts often issue liens when a debtor fails to pay a loan or other debt agreement. A lien is a legal claim that gives a creditor or lender the right to your property or assets if you fail to repay a debt.
How to remove a lien without paying?
You can try to remove a lien without paying by proving it's invalid (e.g., statute of limitations expired, errors in filing), negotiating a settlement for less, filing for bankruptcy (like Chapter 13 to potentially strip junior liens), or filing a court petition if the lienholder is unresponsive or the lien was fraudulent, but most methods still involve some resolution or legal action to clear the title, often requiring a court order or creditor's release.
How to dispute a lien on your property in Georgia?
File a Notice of Contest
A Notice of Contest is a document you file with the county real estate records and mail to the lien claimant, demanding that the lien claimant file suit or have the lien expire within 60 days.
Can anyone put a lien on a car title?
The lienholder can be a financial institution, a third party, or an individual. While most lienholders tend to be financial institutions, it's possible for individuals to be lienholders on a vehicle as well.
How long does a lien typically last?
A judgment lien expires after 5 years from the date it is recorded but may be rerecorded once for another period of 5 years not less than 120 days before the expiration of the initial judgment.
Why would someone put a lien on their own property?
Someone might place a lien on their own property voluntarily to secure a loan (like a second mortgage/HELOC), use it as collateral for a business debt, or for strategic financial/legal reasons (like in divorce to secure future payments or ensure a party gets their share); however, most liens are involuntary, placed by creditors (IRS, contractors, judgment holders) for unpaid debts like taxes, home improvements, or court judgments, making it difficult to sell or refinance until paid.
What is the maximum period of lien?
(c) to (f): (i) Lien is retained by a permanent Government employee (GE) for a period of 2 years. It is extendable upto 3 years in exceptional cases.
What is the 25 foot rule in Florida?
The State of Florida has enacted a new law termed the “Halo Law.” While move over laws are aimed at protecting first responders on the roadways, the Halo Law applies anywhere that first responders are actively performing their duties by creating a 25-foot buffer zone to allow them to carry on their duties.
What is the 7 year property law in Florida?
Florida's "7-year property law" refers to adverse possession, a legal doctrine allowing someone to gain title to property by possessing it openly, continuously (7 years), and hostilely, meeting extra requirements like paying taxes or having "color of title" (a flawed deed). It's how squatters or long-term occupiers can claim land, often involving a written document or paying property taxes for the statutory period, while the true owner neglects the property.
What is the 80/20 law in Florida?
In Florida, the 80/20 rule primarily refers to requirements for 55+ age-restricted communities, meaning at least 80% of occupied units must have one resident 55 or older, allowing the other 20% for younger occupants, as defined by the federal Housing for Older Persons Act (HOPA). A separate "80/20 rule" in Florida labor law involves tipped employees, where 80% of their time should be on "tip-supporting work" (producing tips), though this is less common in general discussion.