How can two parties create a lien on property for money owed?

Full question:

Need a lien doc to file when 2 parties mutually agree to place a lein on the property as security for money owed, not contractor work done.

  • Category: Real Property
  • Subcategory: Liens
  • Date:
  • State: National

Answer:

A promissory note can include a security agreement, allowing the lender to claim the specified collateral if the borrower defaults on the loan.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

There is no specific limit to the number of liens you can have on your property. However, each lien must be properly recorded and may affect your ability to refinance or sell the property. Multiple liens can complicate the priority of claims, especially if you default on payments.