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25 Cards in this Set
- Front
- Back
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Who can subject a property to a lien? (3)
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- owners
- tenants - buyers who have contract |
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When does a mechanic's lien begin?
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first furnishing of goods or services
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SoL for Mechanics Liens
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- 120 days to file
- 180 days to sue |
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Can subs get a lien?
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Only first tier
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Can a lien include collection costs?
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No
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Are second tier subs subrogated to the rights of the first tier sub in NC?
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Yes
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How does a sub asset his "lien upon funds?"
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sends a letter to the person owing money as asserts he has not been paid along with a summary of work performed
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What happens if the owing party ignores notices of liens? (2)
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- owner is personally liable
- sub can get a lien on land |
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What happens to other parties (not owner) you ignore notice of lien by subs?
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become personally liable for amounts owed to subs
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If the prior party has already paid all the money owed, what effect on claim of lein
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defeated
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Two potential claims of a lien for first tier subs
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- improper payment lien
- subrogation lein |
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How does an improper payment lien work?
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Sub notifies land owner of its claim of lien upon funds; owner ignore the notice
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How does a subrogation lien work?
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- first tier sub is subrogated to all rights that the general contractor has to the owner
- if the contractor can get a lien, so can a first tier sub |
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What can a general contractor do to defeat a subrogation lien?
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waive right to liens
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Does the first tier sub have rights after the contractor has been paid?
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No
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Is a second tier sub barred from getting a subrogation lien if the general contractor takes the step of sending the second tier sub notice that is made a payment to first tier sub?
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Yes - this is essentially giving the second tier sub notice to "go after the money"
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Key questions for tax liens (2)
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- what is the priority over recorded interests
- if an innocent person buys a piece of property not knowing that it is subject to a tax lien, does that buyer take free of the lien |
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Liens - General Rule
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Government wins
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How is money from a foreclosure distributed between a city and county?
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pro rata
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When does tax become due?
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when the property is listed on the tax rolls (Jan)
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Are tax liens in the chain of title?
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Yes - the info in the tax office gives constructive notice
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Six critical points about judgment liens
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- only money judgment
- only real property - 10 yrs (but may be renewed) - doctrine of instaneous seisen operates to subordinate a judgment lien to sell third party financer's purchase money mortgage - judgment must be docketed - no first or time first of right (pro rata to multiple judgments on after acquired property) |
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X sells property he does not own to Y. 2 judgments are docketed against X. X inherits property he sold to Y.
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Judgments take priority and pro rata share on after acquired property. Y gets nothing - he never owned the property.
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When may a P get an attachment lien (2)
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- risk of D unavailable for judgment
- assets secreted away |
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Can an attachment lien apply to crops harvested for sale?
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No - this is an ordinary course of business and a secreting away of assets
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