Numerous 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 companies (for unpaid taxes or different assessments), contractors, subcontractors, and suppliers (for work carried out or supplies offered however not paid for, also called mechanics’ liens), owners’ associations (for unpaid dues), and people or companies who win judgments in court docket towards a house owner.
The flexibility to encumber a property with a lien gives a important mechanism for guaranteeing money owed are paid. It protects the pursuits of collectors by providing a authorized recourse for recovering funds owed. This technique helps accountable monetary practices in actual property and building, encouraging well timed funds and contributing to a secure market. Traditionally, liens have been a vital component of property regulation, offering a constant technique of securing obligations associated to actual property.
