Varied entities can encumber a California property with a lien, a authorized declare towards belongings sometimes used as collateral to fulfill a debt. These embrace authorities businesses (for unpaid taxes or different assessments), contractors, subcontractors, and suppliers (for work carried out or supplies offered however not paid for, often known as mechanics’ liens), householders’ associations (for unpaid dues), and people or companies who win judgments in courtroom towards a home-owner.
The flexibility to encumber a property with a lien offers a important mechanism for making certain money owed are paid. It protects the pursuits of collectors by providing a authorized recourse for recovering funds owed. This method helps accountable monetary practices in actual property and development, encouraging well timed funds and contributing to a secure market. Traditionally, liens have been a vital component of property legislation, offering a constant technique of securing obligations associated to actual property.
