Liens Flashcards
Liens may arise through
3
- contract
- statute
- equity
Mechanic’s, Laborer’s, and Materialmen’s Liens
Anyone who tows, alters, repairs, stores, services, treats, or improves personal property shall have lien on the property
A lien is
a claim or encumbrance
Wage liens for unapid employees
in the case of the insolvency of a corporation, partnership or individual all persons providing labor or services in the regular course of their employment
have a lien for the value of two moths wages on the assets of the firm
Priority over all other claims on the assets
Lien attaches at insolvency
Liens terminate and become unenforceable when
when the debt is paid
Enforcement of a lien
if charges for a lien remains unpaid for 30 days, then the lienor may bring an action to enforce the lien through either public or private sale
Statutory liens arise when
lienor acquires possession of the property and furnishes services
When a lien is not on a motor vehicle, what are the procedural requirements for enforcing a lien?
(4)
- Wait 30 days
- Give notice to parties
- owner has 10 days to notify lienor if he desires a hearing to contest the sale of property
- if does not respond within 10 days, can sell property
When a lien is a motor vehicle, what are the procedural requirements for enforcing a lien?
- wait 30 days
- give notice of DMV
- DMV gives notice
- Owner has 10 days to request a hearing about his property sale.
Private sale lien procedural requirements?
2
- at least 30 days before the sale, notice of sale must be mailed to owner of the property and anyone with an interest
- lienor may not purchase at a private sale. If he does, it is voidable
Public sale lien procedural requirements?
3
- at least 20 days before the public sale, the lienor must notify by mail the owner and each secured or unsecured creditor
- A notice of sale of personal property must be posted where designated by the clerk of the court in the county where the sale is to be held, for 10 days immediately preceding the date of sale.
- lienor may purchase at a public sale
Proceeds of a sale of property upon which a lien is claimed are distributed as follows
- payment of reasonable expenses incurred in connection with the sale
- payment of the obligation secured by the lien
- surplus is paid to secured creditors, then general creditors
If there are multiple owners of real property, the person wishing to impose a lien
must have dealt with all owners
Subcontractors ability to place liens
do not have an agreement so do not have a liens on realty
When does a lien take effect (effective debt)?
When there is visible evidence that labor has begun
A contractor performing work on a project that costs $30,000, what must they do for a lien
They must be licensed or there is a complete affirmative defense against a lien
Actions to enforce a lien on real property must be brought
A lien on realty is perfected by
2
filing a lien within 120 days after the last furnishing of materials
Filed in the office of the clerk in each county
A lien may be discharged
- lienor says it is discharged
- exhibit an instrument of satisfaction
- showing failure to enforce a lien
- filing a judgment dismissing or finally determining lien
- paying the full amount of the lien
- The property is voluntarily discharged to lienee
What kind of Race/Notice jurisdiction is North Carolina?
pure race
What is a pure race recording statute
a mortgage will have priority over any subsequently recorded mortgage
What is the exception to race recording statute
Purchase money mortgage statute
-A properly recorded PMM will have priority over any other liens place don the property by the mortgagor’s creditors
Mechanics lien will have priority over
any mortgage recorded after the effective date
Exception: purchase money mortgage that is part of the land transfer transaction
When a mechanic voluntarily releases a customers car, what happens to his lien?
It is terminated if they voluntarily release possession
How much can an employee recover from an unpaid wages lien against an employer?
What is their priority?
2 months
Above all creditors
