Liens are claims that creditors can make against personal property for debts that have not been paid. Because these liens are legal documents focused on the property itself and not a particular debtor, they are considered part of estate debt and can continue on even after an owner dies. Many liens are filed by contractors that did work on a property and were not paid, known as mechanics liens, while other liens may be created by banks and even the government. Each state, including Mississippi, has its own lien laws.
Contract and Subcontract Obligations
In Mississippi, only workers that have had direct contact and agreement with the owner of the project can file a lien in order to claim payment. This law prevents subcontractors from filing a lien on a property when the owner has actually paid the primary contractor, and the obligation lies with this contractor instead of with the owner.
Filing Liens
When it comes to filing liens in Mississippi, the supplier of services or equipment at the owner's request must create or "perfect" the lien by filing the notice of the lien with the Chancery Clear in the county where the work itself was located. The lien cannot exist unless this recording takes place and is completely ineffective, regardless of the language of the contract, unless a local government has a record of it. This is a common lien law for most states.
Notices and Suits
Many states impose particular time limits on lien filing and claims. In Mississippi, a creditor can file a lien, but the filing must take place within 12 months after the actual work was done and the payment date for the work occurs. If the creditor eventually wants to file a lawsuit, then the same 12-month time limit applies. If the creditor does not file the suit within a year after the payment date, then the lien may be wasted completely.
Tax Liens
Tax liens are created by governments to seize assets to pay for late taxes, often property taxes. Mississippi uses an overbid auction system to sell off assets in a tax sale in order to collect payment on such property taxes. There is also a redemption period in the state, which must be ended by a notice of final sale, which the sheriff must serve to the original owner.
0 comments:
Post a Comment