What is a Lien in Maine?
According to Title 11 § 101 of the U.S. legal code, a lien occurs when a creditor files a legal claim on assets that belong to the debtor. In Maine, a lien is placed on a debtor's assets; it ensures that the creditor will be compensated if the debtor cannot pay back the debt. The accumulated debts can come from unpaid taxes, mortgage payments, unpaid wages, or lawsuits. In the case of a default, a lien gives the creditor rights to seize the assets and guarantee proper compensation. Parties can enter into lien agreements voluntarily, or the court can enforce them involuntarily. Voluntary liens commonly occur in purchasing a house, often referred to as a mortgage. According to Maine's Foreclosure Report, the state saw 74,000 mortgage liens in 2017. That same year only 118 of those mortgage liens resulted in complete foreclosure.
Liens can also either be general or specific. General liens are not associated with a particular asset but all assets that belong to the debtor. This includes cars, financial accounts, loans, and houses. A specific lien is a lien on one particular asset and cannot be applied to anything else. Whichever the case, Maine courts oversee the issuance and enforcement of liens.
Are Liens Public in Maine
Maine liens are deemed public records according to the Maine Revised Statutes. Any liens placed on property in the state of Maine must be filed and recorded with the local office of the Register of Deeds; and these records are made available to interested and eligible requesters. However, liens will become exempt from public record after it has expired, released, or it has been satisfied.
Types of Lien in Maine
In Maine, Liens may be either consensual or non-consensual.
Consensual liens are established with a person's consent, usually because of a loan. For instance, when someone purchases a property with a loan, a consensual lien guarantees the buyer's obligation to make payments on the property. An example of this lien is a residential mortgage. In this case, a home buyer agrees that the bank will obtain a security interest in their residence in exchange for a loan.
Meanwhile, a non-consensual lien, like a consensual lien, is a security interest in a debtor's property that is granted to a creditor to guarantee the payment of a debt. However, the distinction is that a non-consensual lien is established by law or a court and attached without the debtor's consent.
A tax lien is an example of a non-consensual lien granted by federal and state laws to recover unpaid taxes. Another example is a mechanics lien, a legal claim to payment for work or materials supplied to improve or repair the real or personal property, such as a building or a car. In comparison, a judgment lien is a non-consensual lien issued because of legal action. Any judgment lien established from a lawsuit can allow a creditor to seize or sell a debtor's real or personal property if the latter fails to fulfill a financial or contractual obligation.
How Do I Check for Liens in Maine?
Anyone interested in looking up liens in Maine should contact or visit the appropriate government office. These offices produce and preserve lien records within the state.
For real estate liens, inquirers can request a title deed search at the Registry of Deeds in the property's county. Calling the county courthouse or conducting an internet search will help locate the appropriate Registry of Deeds office. The party can review the official record or obtain copies of it at the office.
Free Lien Search in Maine
Lien records in Maine can be reviewed at no charge. However, obtaining copies of the records always requires a nominal fee from the requester.
Anyone who wants to verify liens remotely in Maine can find general indexes on the websites of Registry of Deeds offices. For example, the Cumberland County Registry of Deeds provides document indexes and images dating from 1753 to the present. With parameters such as a book and page number, lien records can be accessed on the agency's website.
Similarly, the Secretary of State's office provides a free online search tool to examine personal property lien records.
What is a Property Lien in Maine?
A Maine property lien is a lien where the creditor's claim is on a piece of the debtor's property. The piece of property is used as collateral. If the party cannot repay their debts, a lien grants creditors, or lien holders, the authority to seize the specified property. Essentially, all liens are property liens because all liens depend on assets to be used as collateral. Parties with tax liens, mortgage liens, mechanics liens, UCC liens, and judgment liens can face repossession of their houses, cars, and other belongings. Like all liens, property liens can be voluntary or involuntary. Voluntary liens may involve payment plans, such as mortgage liens. These liens can assist individuals in paying for a home. Organizations and entities can also place property liens involuntarily, such as homeowners' association liens.
How Do You Know if a Property Has a Lien in Maine?
Generally, most property owners will be notified before or after a lien is placed on their property. If the lien is voluntary, the debtor is usually aware of it because it was attached with their permission. However, if the lien is non-consensual, then it was imposed without the property owner's consent, and the owner may be notified of it - though, at times, this may not happen.
Nonetheless, conducting lien searches is a sure way to determine if a property in Maine has a lien. The location of the liened property and the type of lien will guide the search for such records. For real properties, an interested party can conduct a lien search at the Registry of Deeds in the county where a property is situated to determine if it is subject to a lien or claim. This search will also reveal the legal owner of the property.
On the other hand, the Maine Secretary of State should be contacted regarding liens on personal property such as automobiles, jewelry, and art.
Property Lien Search by Address in Maine
Inquirers can conduct a lien property search by address through the county registry of deeds in the county where the property is located. Property records are received from the county recorder's office, kept on file, and cataloged by the Registry of Deeds in an alphabetical index to be served to the public upon request. These records include lien documents, real estate documents, UCC financing, statements, and surveys. The registry of deeds allows persons to make in-person requests by visiting any of the physical office locations. As an alternative, the majority of registry of deeds offices have an internet search portal that people may use to look up and view the property records they keep, such as federal and state liens and state tax liens. For instance, the Androscoggin County Deed Registry maintains an online searchable database for persons to search for property lien documents.
Free Property Lien Search by Address
Members of the public can perform a free property search by address by visiting the county registry of deeds in the county where the property is located.Liens are matters of public record, meaning they are accessible to persons upon request. Typically, searching for lien documents would require requesters to submit the address of the property. To search for free property liens at no cost in maine, persons can also pay a visit to local courts where the liens were filed.
What is a Tax Lien in Maine?
Tax liens in Maine are involuntary liens placed on a property that belongs to parties or businesses that have failed to pay taxes. Tax liens can be placed at the federal level by the Internal Revenue Service (IRS) if there are unpaid federal taxes. County agencies can place tax liens if state or property taxes go unpaid. Due property taxes, income taxes, and business taxes can result in a lien. The agency will first make the debtor's obligations clear in writing. If the debtor cannot pay the debts, then the creditor and court will place a lien. Paying all outstanding debt is the only way to get rid of a tax lien.
Tax Lien Lookup in Maine
Property tax data is kept by the Maine Revenue Services in a searchable database known as the Maine tax portal. Individuals can initiate a search online by visiting the portal and creating an account on the website. Persons can navigate to the “previous submissions” sections on the webpage and search for Tax liens using the owner of the address or the location of the address as the search keyword.it is also possible to look up Tax liens in person by paying a visit to the property tax division of the Maine Department of revenue services. The department can be contacted at:
Property Tax Division
P.O. Box 9106
Augusta, ME 04332-9106
Phone: (207) 624-5600
What is a Mortgage Lien in Maine?
A mortgage lien is a type of voluntary property lien that parties can agree to have placed on their home. Rather than buying a home and paying in full right away, mortgage liens make it possible to pay for a house over time with monthly payments. As long as payments are consistent, mortgage liens can benefit many. If payments are missed, and debt builds up, the party's home will be used as collateral.
What is a Mechanics Lien in Maine?
Mechanic's liens are defined as liens placed on private property or funds for public projects. A Maine Mechanic's Lien allows entities to get compensated for their labor despite any payment issues that may arise. If a property owner refuses or fails to pay any construction companies, builders, contractors, or work supplies regarding the property, the laborer can place a lien. All contractors, including subcontractors, sub-subcontractors, and suppliers with contracts with a contractor or a subcontractor, have the right to file a Maine lien claim statement. If the property owner still does not compensate, the lien gives the lienholder rights to full ownership of the property.
What is a UCC Lien?
The Uniform Commercial Code (UCC) is a set of laws and guidelines regarding commercial transactions, such as buying goods and services in the country. UCC liens typically involve money lending for business and construction. The court can take out UCC liens against specified pieces of property, or liens can cover any of the debtor's assets. UCC is not federal law but is adapted to each state individually as state laws. A UCC lien can negatively affect businesses by preventing them from borrowing more, affecting credit reports, and risking assets.
Entities who have loaned money to a party but have not been repaid can announce a lien if they have previously filed a UCC-1 form. A UCC-1 filing gives creditors the rights to take possession of property named as collateral. Lenders or creditors can fill out a UCC-1 form and mail it to the following address:
Bureau of Corporations, Elections & Commissions
UCC Section
101 State House Station
Augusta, ME 04333-0101
Parties can also submit the form in person at:
Bureau of Corporations, Elections & Commissions
Burton Cross Building, UCC Section
111 Sewall Street, 4th Floor
Augusta, ME 04330
What is a Judgment Lien?
A judgment lien is granted to a party by the court after a lawsuit. Creditors who are owed money can decide to sue a debtor for the outstanding amount owed. To debtors, judgment liens are involuntary. After the court rules favor the creditor or lender, the debtor must agree to pay back the debt or risk losing their property. If the debtor agrees to pay back debts, the courts will put a repayment plan in place. If the debtor is still unable or refuses, the court will liquidate their property to pay back creditors. Business, homes, real estate, cars, and furniture are all at risk of being lost in a judgment lien.
What is a Federal Tax Lien
A federal tax lien is the government's formal claim made against a person's property when they disregard or refuse to pay a tax bill. When a taxpayer fails to make their tax payments, a lien protects the government's claim in their property according to Internal Revenue Code (IRC) § 6321.It covers both present and future rights a person may have to property (including things like a house and a car).
What is a Lien Title?
A lien title is a legal claim that one party holds against another party's real or personal property. When financing the purchase of a property or using it as collateral for a loan, among other situations, a lien may be filed against the title of the property. A lien on a property title, in principle, grants its holder ownership rights to the subject property if the owner is unable to make the agreed-upon payment to make up for losses sustained.
Where and How to Do a Title Search in Maine
A title search is the "chain of title" that outlines the ownership history and names each individual or organization that has previously held the property and/or building.
To perform a title search interested persons can visit the county of deeds office to search through documents to fully comprehend the property's legal and ownership background.A title search will also involve obtaining documents from government agencies, such as formal land records and deeds and reading the paperwork, then examining it to see how it affects the property. A title search is one of the most crucial steps in a real estate transaction since it confirms that the property being sold is actually suitable for sale. The existence of encumbrances, such as restrictions or unpaid tax liens, will affect whether the property is eligible.
Voluntary Lien vs Involuntary Lien in Maine?
Voluntary or consensual liens occur when a property owner agrees to use their property as collateral if they cannot fulfill their agreement of paying back future or current debts. Many contractual agreements can be considered voluntary liens, such as personal loans and business loans. Parties who breach a lien agreement may be forced to give up property. Involuntary liens are placed by a business or government entity to guarantee that a party repays debts or loans. Failure to pay back creditors results in property confiscation regardless of whether the property owner agreed voluntarily.
How Creditors Collect Payment Through a Lien
Generally, placing a lien on a debtor's property means that a debt may be paid from the proceeds of the property's sale or refinance.
In addition, when a lien is recorded against a property, it becomes part of its legal title. Although there is no legal requirement that liens be removed before the property can be sold or transferred, the lien must be cleared if the buyer requires financing or prefers a clear title. This guarantees that a creditor will be paid.
How Do I Get a Lien Removed in Maine?
In Maine, a lienholder (the creditor) removes a lien from a property by filing a lien release. A lien release is a document that serves as an official notice that a lien has been lifted. Typically, a creditor only files a release upon receiving payment from a debtor.
As a result, paying the associated debt or completing all contractual or financial obligations attached to a lien is the simplest way to remove it. The property owner may pursue legal action to remove the lien if the creditor fails to file the release after satisfying the underlying conditions.
Renegotiating more favorable terms with a creditor can also prompt the removal of a lien from one's property. If both parties can agree on a payment plan, the lienholder may agree to dismiss the lien.
Lastly, a property owner can eliminate a lien if they successfully contest its validity in court. The court will release the lien if it is unethical or unlawful.
How Long Does a Lien Stay on Your Property in Maine?
Typically, the kind of lien imposed on a debtor's property in Maine determines how long it will remain on the property. A voluntary lien will typically remain on a piece of property until the loan is repaid or the underlying commitment is fulfilled.
In contrast, an involuntary lien will remain in place on a debtor's property for as long as its statute of limitations is effective. For example, a tax lien is valid for ten years in Maine, a mechanic's lien for 120 days from the date of filing, and a judgment lien for 20 years.
How to Avoid a Lien in Maine
Property owners can avoid liens by paying their debts on time and meeting all financial and contractual duties agreed to with another party. So long as there are no pending debts, no creditors will feel the need to file a lien to protect their investment.
