A Claim of Lien (or "Lien Claim") is a legal instrument that lets suppliers and contractors receive the money they have earned for the work and improvements to another party's property. Typically used by construction and repair professionals on private projects they worked on, this kind of claim represents security against the monetary funds and services the property owner has to pay for to another individual or organization. It becomes a burden - if the lien is attached to the house or car in question, you cannot transfer the title to the property without paying off the lien first.
Download a printable Claim of Lien Form through the link below.
The most common type of lien is a lien on real estate - homeowners who owe money to their contractors may encounter this limitation if they still have to pay for the labor and materials spent on their apartment or house built from scratch or improved by builders. Liens are also used by auto and boat mechanics - when the vehicle or vessel owner does not pay for the repair and maintenance services, their certificate of title can be encumbered with a lien.
Certain states allow creditors to obtain a lien on the personal possessions of their debtors - shares, precious metals, electronics, or other valuable objects. Check the laws of your state to see if you can claim a lien with the county recorder's office.
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