A conventional lien is a legal claim or right against a property that is established through a contract between parties. Unlike statutory liens, which are created automatically by law, a conventional lien arises specifically from an agreement. This type of lien is typically used to secure the payment of a debt or obligation, providing the creditor a legal interest in the property until the debt is satisfied.
Conventional liens are commonly used in various legal contexts, particularly in civil law. They can be relevant in cases involving real estate transactions, loans, or other financial agreements where a party seeks to secure their interest in property. Users may find it beneficial to utilize legal templates from US Legal Forms to create or manage documents related to conventional liens, ensuring compliance with applicable laws.
Here are a couple of examples of abatement:
Example 1: A contractor may place a conventional lien on a homeowner's property if the homeowner fails to pay for renovation work completed under a contract.
Example 2: A bank may secure a loan by placing a conventional lien on the property being financed, ensuring they have a claim to the property if the borrower defaults on the loan.
| State | Key Differences |
|---|---|
| California | Allows specific types of conventional liens for construction projects under the mechanic's lien laws. |
| Texas | Has particular requirements for the enforcement of conventional liens, including notice provisions. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Statutory Lien | A lien created automatically by law, without the need for a contract. | Conventional liens require a contract, while statutory liens do not. |
| Judgment Lien | A lien placed on property following a court judgment against the property owner. | Judgment liens arise from court actions, whereas conventional liens are based on contracts. |
If you are involved in a situation where a conventional lien may apply, consider the following steps:
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A conventional lien is a legal claim against property created through a contract to secure payment of a debt.