Define: Common Law Lien

A common law lien is a legal claim or encumbrance placed on a property or asset by an individual or entity to secure a debt or obligation owed to them.

Unlike statutory liens that are created by specific laws or regulations, a common law lien is based on principles of common law and may vary in application depending on jurisdiction.

A common law lien can be placed on various types of property or assets, including real estate, vehicles, personal belongings, or even intangible assets like intellectual property.

A common law lien is typically created through a written agreement or contract between the lienholder and the debtor, outlining the terms and conditions of the debt or obligation.

In most cases, a common law lien cannot be enforced without obtaining a court order. The lienholder must file a lawsuit and obtain a judgment in their favor before they can enforce the lien.

If a debtor fails to satisfy a common law lien, the lienholder may have the right to seize and sell the property or asset to recover the debt owed to them.

The duration of a common law lien may vary depending on the jurisdiction and the specific circumstances. In some cases, the lien may expire after a certain period of time if not enforced.

In some cases, a common law lien can be transferred or assigned to another party, provided that the terms of the original agreement allow for such transfer and all necessary legal requirements are met.

Yes, a debtor may have legal remedies available if they believe a common law lien was unjustly or fraudulently placed on their property. They may seek to have the lien removed or challenge its validity in court.