Leins

Question 1

There are 2 types of liens

Answer 1

1) General liens- which gives the lienor a claim over the lienees property for any debt or obligation that the lienee owes

2) Special liens- which gives the lienor a claim over the lines property only for a debt or obligation relating to that particular item of property — if a specific lien is released, the lien is waived to the extent of the items released

Question 2

Enforcement of Liens

Answer 2

In Virginia, a Lienor must give 3 forms of notice when to dispose of a lien

1) Advertise the time, place, and terms of the auction

2) 10 days notice of the auction to the property owner; and

3) advance notice to any 3rd person with a SI in the property

When the property is sold, the lienor may keep sales proceeds up to the amount due and any additional amount must be paid forth to any other lienor with unpaid and then to the lienee

Question 3

Release of Liens

Answer 3

Liens can be released by 1) action of the court or 2) by agreement with the with the lienor

If the lienee has proof that the underlying debt or obligation has been paid or discharged, the lienee can ask the court to release the lien - requires 20 days advance notice to the lienor.

If lienee makes payment to the lienor and the property is returned to the lienee, the lienor is no longer entitled to assert a lien against the property