How to File a Property Lien

Filing a property lien against someone who owes you money should be your last resort to collect the debt. A property lien does not have to be paid until the debtor is selling or refinancing the property. If the debtor transfers the property to a family member or friend, the lien can stay with the property and it could be a very long time, if ever, that you get your money repaid. You will be able to collect interest on the lien until it is paid, however, most people are just happy to get their original loan repaid.

Instructions

1

Go to court and obtain a judgment against the party owing you money. You can file a lawsuit in court for the money that is owed you. Depending on how much is owed, you will probably go to small claims court. If you have all the proper documentation on the loan, you will be issued a judgment for that amount.

2

Go to your county clerk's office and get a certified copy of the judgment. After you have been awarded the judgment, it may take a week or so for it to be filed. You can then pick up a certified copy, which you will need to file the property lien. There may be a fee for this.

3

File the judgment in the land records in the county where the property is located. You must have the exact address of the property and your certified copy of the judgment. Not all judgments are allowed to be filed as property liens and this varies from state to state. Once the judgment is filed, it becomes a lien on the property. If the debtor owns more than one property, you may file on the others also.

4

File a mechanic's lien. A mechanic's lien is a record of cost of building or improvements to a home. It is called a lien claim or notice of lien. How and when contractors can file also varies from state to state, however, normally it is filed before the work starts on the property. After the work is finished and the contractor is paid, a satisfaction of lien is filed and the encumbrance to the property is removed.