Contractors and material suppliers must jump through several hoops in order to have a perfected claim of lien. One of those hoops is the preparation and recording of a lien claim.
By definition, a lien claim is the right to satisfy an obligation out of certain property owned by the debtor. In the case of construction, it means that a lien claimant (contractor, supplier or equipment vendor) can record a document that creates an encumbrance against the real property that they have helped to improve. The encumbrance, or lien, is an attachment to title, thus impacting the property owner’s ability to refinance or sell the property. In many instances, the property could still be refinanced or sold, but the lien claimant would have to be paid from the closing proceeds.
Are you ready to perfect your lien rights? Fill out our Account Referral Form today.