Also known as: legal lien · equitable lien · legal liens · equitable liens · liens · lien at law · lien in equity
Written by attorneys · grounded in primary & secondary sources — see below
Liens obtained through judicial or equitable proceedings against real property. These liens attach to fixtures and are subordinate to a prior perfected security interest in the fixture when the lien arises after perfection.
Lola Langley contracts to buy a warehouse from Legacy Motors. A judgment creditor later records a lien against the property after the contract but before closing. The unreleased lien prevents Legacy Motors from delivering marketable title, so Lola may rescind the contract.
Linden Bank holds a perfected security interest in fixtures. After default, a junior judgment lienholder records its lien on the same fixtures. The bank sells the fixtures and must apply surplus proceeds to the junior lien after satisfying its own secured claim.
Select any source to read its text and confirm it supports the definition.
Lakewood Manufacturing violates a restrictive covenant on its industrial site. The neighboring owner obtains a court order imposing a lien to secure payment of damages for the breach. The lien attaches to the land and may be enforced by foreclosure.
Luis Lopez owes past-due child support. The court enters an order directing the clerk to place a lien on his commercial building. The lien permits execution against the property to satisfy the support obligation.
Lars Lindstrom transfers his mortgaged warehouse to the lender by deed in lieu of foreclosure. A junior judgment lien remains on the property because the agreement does not expressly extinguish it. The junior lienholder may still enforce its claim against the land.
Lila Lin obtains an unperfected judgment lien on fixtures already subject to an unperfected security interest. The first party to attach its interest obtains priority over the later unperfected lien.
A legal or equitable lien loses priority to a security interest in fixtures when the security interest is perfected before the lien arises through legal or equitable proceedings. The security interest then prevails under the fixture priority rules.
Supporting sources
An unreleased judgment lien constitutes a title defect that renders title unmarketable. The buyer may refuse to close or rescind the contract unless the seller cures the defect by obtaining a release before closing.
Yes. A court may impose a lien as one of several available remedies to enforce a servitude. The choice of remedy considers the nature of the servitude, party conduct, fairness, and the costs and benefits of enforcement.
A deed in lieu of foreclosure may extinguish or preserve junior liens depending on the jurisdiction and the terms of the agreement. Courts scrutinize the transaction for duress or unfairness before determining the effect on junior interests.
…with whom The Chief Justice joins, dissenting. I respectfully dissent. The Court’s decision expands the reach of federal tax liens beyond what the statute will bear. Under Michigan law, a tenancy by the entirety is a unique form of concurrent ownership in which neither spouse has an individual interest that can be…