Massachusetts Law on Property Liens: What You Should Know

Massachusetts Law on Property Liens: What You Should Know

Property liens are legal claims against real estate to secure payment of a debt. In Massachusetts, understanding the law surrounding property liens is crucial for both property owners and creditors. This article outlines the key aspects of Massachusetts law on property liens, helping you navigate your rights and responsibilities.

Types of Property Liens in Massachusetts

Massachusetts recognizes several types of property liens, each serving a different purpose. The most common types include:

  • Mechanic's Liens: These liens are filed by contractors, subcontractors, or suppliers who have not been paid for work performed on a property. Under Massachusetts law, property owners must be notified before a mechanic's lien can be enforced.
  • Tax Liens: When property taxes go unpaid, the city or town may place a lien on the property. This type of lien secures the municipality's interest in collecting owed taxes.
  • Judgment Liens: If a creditor obtains a court judgment against a property owner, they can file a judgment lien against the owner's real estate. This lien ensures that the creditor will be paid upon the sale of the property.

Filing a Property Lien

Filing a property lien in Massachusetts requires adherence to specific laws and procedures. For a mechanic's lien, the claimant must file a statement of the lien with the appropriate registry of deeds within 90 days of the last date work was performed. Additionally, within 30 days of filing, the claimant must notify the property owner of the lien, often through certified mail.

For tax liens, municipalities typically file them automatically when taxes remain unpaid for a certain duration, as stipulated by local laws. Regarding judgment liens, the creditor needs to file the judgment with the registry of deeds as well.

Enforcing a Lien

Once a lien is filed, enforcing it can vary based on the type of lien. Mechanic's lien claimants must initiate legal action to enforce the lien within one year of filing. If a property owner pays the debt, the lien can be released. Tax liens can lead to property foreclosure if taxes remain unpaid for a set period, typically involving a judicial process.

For judgment liens, the creditor may enforce collection by levying the property when the owner attempts to sell or refinance. Understanding the enforcement process is vital to recovering owed debts or defending against a lien.

Liens and Property Sales

When selling property subject to a lien, the lien must be addressed prior to closing. This often means the lien amount will need to be paid from the proceeds of the sale. Buyers should be cautious and ensure there are no outstanding liens, as they can become responsible for these debts.

Property owners considering selling with an existing lien should consult with legal counsel to negotiate lien settlements or explore options for lien removal.

Conclusion

Understanding Massachusetts law on property liens is essential for property owners and creditors alike. Knowing the different types of liens, the procedures for filing, and the enforcement processes can help protect your rights and interests. It’s advisable to seek legal counsel if you are involved in a lien dispute or need guidance on your specific situation.