If a construction lien (or mechanic's lien, as it is sometimes referred to) is not properly filed, or has defects in the lien itself (liens are highly technical documents), it may be discharged. An attorney can bring an action to discharge a lien. In New Jersey, this can be done either through an Order to Show Cause, or by forcing the lienor to bring an action to foreclose and defend the lien.
Best practices dictate that you work with the association attorney to prepare and file any lien on the part of an HOA. An improper lien, or an improper filing of a lien can be used by the owner to escape the action.
It would be improper for an HOA to file a lien if there is no legal reason to file such a document.
you could get sued by the holder of the lien
Best practices dictate that you work with the association's attorney to identify the proper lien to file, and to follow the process required to file such a lien. An improper lien, filed improperly will give an owner an 'out'.
Check the laws of the state the account is in. But, Yes, the bank has to contact you to tell you the account is frozen by a lien. It will also tell you that you have a certain amount of time to go to court to object to the lien for whatever reason you think the lien is improper.
you have to pay it
This is a task for your association's counsel. Filling an improper lien, improperly, may give the debtor an easy out of the monies owed.
Liens are very specific in terms of their types and methods of filing. Associations are best advised to turn over any proposed lien action to association counsel to file. An improper lien, improperly filed can give the subject valid grounds upon which to oppose the lien.
A lien on the deed -- unit's title -- clouds it, meaning that monies to satisfy the lien must be paid before clear title can be transferred.
No. Liens are a legal specialty and best practices dictate that you work with association counsel to file the proper lien, properly, to maximize the association's chances that it can recover money from this action. An improperly filed, improper lien may afford the debtor defense against your claim.
The lain stays with the mortgage. And if the owner of the mortgage does not settle up with the lien holder that person cannot sell their house, car, boat or whatever the lien is on. They have to pay lien first or sell and before they get the money the amount of the lien will be deducted from total sell
Liens are a legal specialty and best practices dictate that you work with association counsel to file the proper lien, properly, to maximize the association's chances that it can recover money from this action.An improperly filed, improper lien may afford the debtor defense against your claim.