Types of Liens in Miami

Liens are legal interests a creditor has against an owner’s property. An owner may not be free to sell property until they have satisfied the lien.

There are several different types of liens in Miami, and the kind of lien makes a difference when buying or selling property. A real estate liens attorney at Jacqueline A. Salcines, P.A. could explain a lien’s impact on your property transaction and help resolve it.

Understanding the Different Kinds of Liens

Most people buying or selling property are familiar with mortgage liens. A mortgage lender provides funds for the purchase and places a lien on the property to secure its interest. When an owner with a mortgage sells the property, the sale proceeds are applied to the mortgage at the closing, and the lender releases the lien.

There are other forms of liens that can complicate a real estate closing. A legal professional at Jacqueline A. Salcines, P.A., could identify all liens on a property prior to closing and work with the parties to resolve them.

Federal Tax Liens

When someone fails to pay their federal taxes in full, the Internal Revenue Service (IRS) will publish a notice of lien against the property. When the taxpayer does not have enough equity in the property to satisfy their debt to the mortgage lender and the IRS, closing a property sale can become complicated.

When the IRS determines that it will likely collect more from a taxpayer by releasing the lien, a property sale could go forward. Attorney Salcines is an accountant as well as a real estate attorney and may be able to reach an acceptable arrangement with the IRS to release the lien.

Mechanic’s Liens

Anyone who provides labor, services, or materials to improve a property can get a mechanic’s lien against the property if they are not paid in full. When they relate to real property, mechanic’s liens are sometimes called construction liens.

Sometimes, a construction lien is placed on a property when the general contractor does not pay a supplier, worker, or contractor. Florida Statutes §713.16 allows a property owner to demand that the person placing the lien provide a sworn statement itemizing the services, labor, or supplies for which they have not been paid. In this situation, an attorney could contact the general contractor and demand payment to resolve the lien.

Judgment Liens

When a creditor cannot collect a debt from a property owner, they may seek a judgment in court.  If the court grants the judgment, the creditor can put a lien on the debtor’s property.

A knowledgeable lawyer could determine what type of lien or liens are on your property in Miami and help you explore legal options to resolve them.

Priority of Liens

When property is sold, the general rule is that liens are satisfied according to the date they were recorded. The first lien to be recorded has the highest priority, and subsequent liens will be paid in order if there are sufficient funds.

There are some exceptions to the rule. For example, even when a property has a recorded mortgage, a tax lien recorded later will take priority over the mortgage debt.

The priority of liens can be a critical factor when attempting to resolve them. Jacqueline Salcines knows the various types of liens, understands this hierarchy, and could leverage it when negotiating for the removal of a lien in Miami.

Speak With a Miami Attorney About Removing Different Types of Liens Today

Liens are a factor in many property transfers. Understanding the different types of liens in Miami can help you clear a title and buy or sell a property.

Liens are complicated, so don’t go it alone. Get in touch with Jacqueline A. Salcines, P.A. for help resolving a lien.