Lien
A lien is a legal claim against a property that secures the payment of a debt or obligation. It grants the creditor the right to seize the property if the debtor fails to fulfill their financial obligations. In Virginia, liens can arise in various contexts, including:
1. Mechanic’s Lien: Contractors, subcontractors, or suppliers who contribute to the improvement of real property have the right to place a mechanic’s lien on the property if they are not paid for their services or materials.
2. Judgment Lien: If a creditor sues and obtains a judgment against a debtor, they can file a judgment lien against the debtor’s real property in Virginia. This allows the creditor to collect the debt by foreclosing on the property.
3. Tax Lien: Local governments can place a tax lien on a property if the owner fails to pay property taxes. In Virginia, tax liens take priority over most other liens, including mortgages.
4. HOA or Condo Association Lien: Homeowners’ associations (HOAs) and condominium associations can place liens on properties for unpaid dues or assessments.
5. Mortgage Lien: When a property is mortgaged, the lender typically holds a mortgage lien on the property as security for the loan.
In Virginia, the laws governing liens can be found in the Code of Virginia, Title 43 (Property and Conveyances). These laws outline the requirements for establishing, enforcing, and releasing various types of liens. It’s essential for property owners to understand their rights and obligations regarding liens, as failure to address them can lead to serious consequences, including foreclosure or loss of property rights.