What are the three types of liens?
Michael Gray
Updated on February 21, 2026
Of the three types of liens (consensual, statutory and judgment,) the judgment lien is the most dangerous form, but one which the informed business owner may be able to eliminate. A judicial lien is created when a court grants a creditor an interest in the debtor’s property, after a court judgment.
What is the purpose of a mechanics lien?
A mechanic’s lien guarantees payment to builders, contractors, or construction firms that build or repair structures and other stakeholders involved in a construction project in the event of a liquidation. Mechanic’s liens are often necessary to secure construction help on a project.
What are the 4 types of liens?
Types of liens
- Tax liens. You have a tax lien if you owe back taxes to the IRS and they place a lien against your property.
- Mechanic’s liens.
- Home-buying liens.
- Consensual.
- Purchase-Money Security Liens.
- Non-Purchase-Money Security Liens.
What is an OFS lien?
A UCC lien filing, or UCC filing, is a notice lenders file when a business owner takes a loan against an asset. A UCC filing gives lenders a claim on assets a debtor pledges as collateral. The term originates from the Uniform Commercial Code (UCC), a set of rules governing commercial transactions.
What lien has the highest priority?
A general rule in property law says that whichever lien is recorded first in the land records has higher priority over later-recorded liens. This rule is known as the “first in time, first in right” rule.
What is the law of a maritime lien?
As a consequence, the law of maritime liens is a confusing mix of federal statutes and case law. In general, maritime liens arise out of maritime transactions and maritime accidents.
Can a lien be attached to a cargo?
Thus, a lien attached to the vessel related to such cargo without there having been any problems which might give rise to a claim by the cargo owner. For that proposition, the court cited the 1860 case The Edwin, 65 U.S. (24 How.) 386, 394 (1860).
What kind of lien is a tort lien?
Tort liens, which are liens from maritime accidents such as collisions or damage to cargo Preferred ship mortgages recorded with the U.S. Coast Guard under the Preferred Ship Mortgage Act Liens for “necessaries” furnished to a vessel such as food, fuel, and repairs
How did a bank get a lien on a ship?
Unquestionably, the charter was breached after the ship mortgage was obtained and filed with the Coast Guard. The new owner, Global, also defaulted on the loan to the bank and the bank filed suit in federal court, and seized the vessel pursuant to its ship mortgage.
