Can you put a lien on leased property?
Full Question:
Answer:
A lien is a claim to property for the payment of a debt, typically one connected to the property. It is the right to retain the lawful possession of the property of another until the owner fulfills a legal duty to the person holding the property. The right of lien generally arises by operation of law, but in some cases it is created by express contract. There are two kinds of liens; particular and general. When a person claims a right to retain property, due to money or labor invested in that property, it is a particular lien. Liens may arise by express contract; from implied contract, as from general or particular usage of trade; or by legal relation between the parties, such as created with common carriers and inn keepers. To create a valid lien, it is essential that the party claiming a lien should have the absolute property or ownership of the thing or, at least, a right to vest it; that the party claiming the lien should have an actual or constructive, possession, with the assent of the party against whom the claim is made; that the lien should arise upon an agreement, express or implied and not be for a limited or specific purpose that contradicts the express terms or the clear, intent of the contract. In certain circumstances, the lien holder may foreclose on the property if the debt is not paid in full. Liens can generally be removed by the payment of the amount owed. This payment can occur at any time up to and including the stage at which the closing documents for the sale of the property are signed.
There are several types of liens, all of which could cloud the title and prevent the seller from conveying marketable title to the buyer. A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. Such cases include failure to pay a debt, including credit cards, bank loans, or deficiency judgments on repossessed vehicles. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt. Laws regarding judgment liens vary by jurisdiction, so local laws should be consulted for specific requirements.
Small claims courts are intended to resolve civil disputes involving small amounts of money, without formal rules of evidence and long delays. Each state has its own rules regarding how long individuals have to file suit, once they have been harmed or an event occurs that gives rise to a claim. Generally, they have at least one year from the injury or event (or its discovery, in some cases) to file their suit.
The following are Washington statutes:
RCW 60.10.020 Any lien upon personal property, excluded by [*] RCW 62A.9-104
from the....
Any lien upon personal property, excluded by [*] RCW 62A.9-104 from the
provisions of the Uniform Commercial Code (Title 62A RCW), may be
foreclosed by: (1) An action in the district court having jurisdiction in
the district in which the property is situated in accordance with
RCW 60.10.023, if the value of the claim does not exceed the jurisdictional
limit of the district court provided in RCW 3.66.020; or (2) an action in
the superior court having jurisdiction in the county in which the property
is situated in accordance with RCW 60.10.023, if the value of the claim
exceeds the jurisdictional limit of the district court provided in
RCW 3.66.020; or (3) summary procedure as provided in this chapter.
RCW 60.10.023 The provisions of chapter 61.12 RCW, so far as they are
applicable,....
The provisions of chapter 61.12 RCW, so far as they are applicable,
govern in actions for the judicial foreclosure of liens on personal
property excluded by [*] RCW 62A.9-104 from the provisions of the Uniform
Commercial Code, Title 62A RCW. The lien holder may proceed on the lien;
and if there is a separate obligation secured by the lien, the lienholder
may bring suit on the obligation. If the lienor proceeds on the obligation,
the court shall, in addition to entering a decree foreclosing the lien,
render judgment for the amount due on the obligation. The decree shall
direct the sale of the lien property, and if there is a judgment on an
obligation and the proceeds of the sale are insufficient to satisfy the
judgment, the sheriff is authorized to proceed under the same execution and
levy on and sell other property of the lien debtor, not exempt from
execution, for the sum remaining unsatisfied.
Redemption rights and the rights and interest of a purchaser for value
under this section are governed by RCW 60.10.040 and 60.10.050.
RCW 60.10.027 The provisions of chapter 61.12 RCW, so far as they are
applicable, shall....
The provisions of chapter 61.12 RCW, so far as they are applicable, shall
also be available to a secured party seeking to enforce a security interest
by judicial proceedings as authorized by [*] RCW 62A.9-501(1). In such a
proceeding, the court shall enter a judgment foreclosing the security
interest and shall render judgment for the amount due on the secured
obligation. The decree shall direct the sale of property that is subject to
the foreclosed security interest and is within the court's jurisdiction,
and if the proceeds of sale are insufficient to satisfy the judgment, the
sheriff is authorized to proceed under the same execution and levy on other
property of the judgment debtor, not exempt from execution, for the sum
remaining unsatisfied.
The rights and interest of a purchaser for value are governed by
RCW 60.10.040 except as otherwise provided in Title 62A RCW.
RCW 60.10.030 (1) A lien foreclosure authorized by RCW 60.10.020 may be
summarily....
(1) A lien foreclosure authorized by RCW 60.10.020 may be summarily
foreclosed by notice and sale as provided herein. The lien holder may sell,
or otherwise dispose of the collateral in its then condition or following
any commercially reasonable preparation or processing. The proceeds of
disposition shall be applied in the order following to
(a) the reasonable expenses of retaking, holding, preparing for sale,
selling and the like and, to the extent provided for in the agreement and
not prohibited by law, the reasonable attorneys' fees and legal expenses
incurred by the secured party;
(b) the satisfaction of indebtedness secured by the lien under which the
disposition is made;
(c) the satisfaction of indebtedness secured by any subordinate security
interest in the collateral if written notification of demand therefor is
received before distribution of the proceeds is completed. If requested by
the lien holder, the holder of a subordinate security interest must
seasonably furnish reasonable proof of his or her interest, and unless that
is done, the lien holder need not comply with that demand.
(2) The lien holder must account to the lien debtor for any surplus, and,
unless otherwise agreed, the lien debtor is not liable for any deficiency.
(3) Disposition of the collateral may be by public or private proceedings
and may be made by way of one or more contracts. Sale or other disposition
may be as a unit or in parcels and at any time and place and on any terms
but every aspect of the disposition including the method, manner, time,
place and terms must be commercially reasonable which shall be construed as
provided in RCW 60.10.070. Unless collateral is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market, reasonable notification of the time and place of any public sale or
reasonable notification of the time after which any private sale or other
intended disposition is to be made shall be sent by the lien holder to the
lien debtor, by first-class mail, and registered or certified mail, and
except in the case of consumer goods to any other person who has a security
interest in the collateral and who has duly filed a financing statement
indexed in the name of the lien debtor in this state or who is known by the
lien holder to have a security interest in the collateral. The lien holder
may buy at any public sale and if the collateral is of a type customarily
sold in a recognized market or is of a type which is the subject of widely
distributed standard price quotations he or she may buy at private sale.
Before accepting any bid or offer for purchase, the lien holder shall
inform the bidder or purchaser of the existence of any prior lien or
security interest in the collateral, and the identity of the holder of the
prior lien or security interest. If the lien holder does not know this
information, he or she shall advise the prospective purchaser of that.
RCW 60.10.040 When a lien is foreclosed in accordance with the provisions of
this....
When a lien is foreclosed in accordance with the provisions of this
chapter, the disposition transfers to a purchaser for value all of the lien
debtor's rights therein, discharges the lien under which it is made and any
security interest or lien subordinate thereto. The purchaser takes free of
all such rights and interests even though the lien holder fails to comply
with the requirements of this chapter:
(1) In the case of a public sale, if the purchaser has no knowledge of
any defects in the sale and if he or she does not buy in collusion with the
lien holder, other bidders, or the person conducting the sale; or
(2) In any other case, if the purchaser acts in good faith.
The purchaser takes subject to any security interest or lien that is
superior to the lien under which the sale is made. In the case of property
that is subject to a certificate of title, the department of licensing and
the department's agents and subagents shall not transfer title through this
process unless the new certificate of title reflects the security interest
that is superior to the lien under which the sale is made. If a new
certificate of title is issued that does not reflect the security interest
that is superior to the lien under which the sale is made, the holder of
such interest may request and obtain from the department of licensing a
replacement certificate of title reflecting such security interest, and
showing the purchaser as the registered owner. The department of licensing
shall notify the purchaser of the issuance of any replacement title.
RCW 60.10.050 At any time before the lien holder has disposed of collateral
or entered....
At any time before the lien holder has disposed of collateral or entered
into a contract for its disposition under this chapter, the lien debtor or
any other secured party may redeem the collateral by tendering fulfillment
of all obligations to the holder that are secured by the collateral as well
as the expenses reasonably incurred by the lien holder in holding and
preparing the collateral for disposition, in arranging for the sale, and
for reasonable attorneys' fees and legal expenses.
RCW 60.10.060 If it is established that the lien holder is not proceeding in
accordance....
If it is established that the lien holder is not proceeding in accordance
with the provisions of this chapter disposition may be ordered or
restrained on appropriate terms and conditions. If the disposition has
occurred the lien debtor or any person entitled to notification or whose
security interest has been made known to the lien holder prior to the
disposition has a right to recover from the lien holder any loss caused by
a failure to comply with the provisions of this chapter. The lien debtor
has a right to recover in any event an amount not less than ten percent of
the original lien claimed.
RCW 60.10.070 As used in this chapter, "commercially reasonable" shall be
construed in...."Commercially reasonable."
As used in this chapter, "commercially reasonable" shall be construed in
a manner consistent with the following:
The fact that a better price could have been obtained by a sale at a
different time or in a different method from that selected by the lien
holder is not of itself sufficient to establish that the sale was not made
in a commercially reasonable manner. If the lien holder either sells the
collateral in the usual manner in any recognized market therefor or if he
sells at the price current in such market at the time of his sale or if he
has otherwise sold in conformity with reasonable commercial practices among
dealers in the type of property sold he has sold in a commercially
reasonable manner. A disposition which has been approved in any judicial
proceeding or by any bona fide creditors' committee or representative of
creditors shall conclusively be deemed to be commercially reasonable, but
this sentence does not indicate that any such approval must be obtained in
any case nor does it indicate that any disposition not so approved is not
commercially reasonable.
RCW 12.40.010 In every district court there shall be created and organized
by the court....
In every district court there shall be created and organized by the court
a department to be known as the "small claims department of the district
court." The small claims department shall have jurisdiction, but not
exclusive, in cases for the recovery of money only if the amount claimed
does not exceed four thousand dollars.