Yes. Understanding how you benefit from having a lien to begin with – even better.
A lien secures your right to be paid for any improvement you have made to real property or materials you have furnished for that purpose. The lien places a hold, called an encumbrance, on that property (or in some cases on a lease on the property) in an amount equal to the value of the improvements you provided.
When you have a lien, the legal process allows you to foreclose, which means to file a legal action to take the property or a share of its value for nonpayment. The court will determine whose position is correct in the case, and, if you are in the right, how much your lien is worth. If the court rules in your favor as the lienor, the property would be auctioned in a foreclosure sale. People would show up to bid on the property. And at that sale, you would be able to use credit in the amount of your lien toward buying the property yourself.
Alexander Barthet is a board certified construction attorney in Florida and holds a B.S. in mechanical engineering. He manages The Barthet Firm, a ten lawyer construction law firm in Miami, and maintains a construction law blog at www.TheLienZone.com. He can be reached at 305-347-5295 or alex@barthet.com.
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