Log in

View Full Version : Are liens required to be recorded


klixtokw
May 18, 2014, 12:38 PM
Are any type of lien required to be recorded?

ScottGem
May 18, 2014, 12:55 PM
The purpose of a lien is to prevent the transfer of a property without the lien being satisfied. If its not recorded, what's to stop the owner from selling the property?

Liens usually come out during a title search.

AK lawyer
May 18, 2014, 04:11 PM
The purpose of a lien is to prevent the transfer of a property without the lien being satisfied. If its not recorded, what's to stop the owner from selling the property?

Liens usually come out during a title search.

I think further explanation is on order.

Let's say someone acquires an interest in property. Only the owner of the property and the owner in the interest know about it until it is recorded. When it has been recorded, it constitutes a lien, because if the owner tries to sell the property, the recorded interest (i.e.: "lien") would be held against the buyer whether the buyer actually did a title search. A recorded interest is a matter of public record. Buyer would be foolish not to do a search.


Are any type of lien required to be recorded?

No, actually. Depends on your jurisdiction, but in general, for example, possessory liens (the person who possesses the thing subject to the lien) don't have to be recorded.

Fr_Chuck
May 19, 2014, 06:19 AM
In most cases, it does not have to be recorded. But if not, and property is sold, the owner of the lien may lose any interest in that property.

By recording it, it protects the owner of the lien.