Liens
A lien is a right to retain possession of another person’s property pending payment of a debt. For example, a garage might not allow the owner of a car to retrieve it until the work they have done has been paid for. The holder of the property is not usually able to deal with it unless there is a contractual or statutory provision permitting this.
A lien may be:
- Legal (or possessory).
- Equitable.
- Contractual.
A legal lien can arise from a common law right, from contract or from statute. It is dependent on the creditor having rightfully obtained possession of the property and remains in force whilst the property is retained.
An equitable lien may arise from contract or by law of equity. It is the right to have property realised to satisfy outstanding debts and does not depend on possession of the property. It is based on the principle that possession of property under a contract for payment will not be allowed without payment.
A contractual lien arises from a contract between the parties.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
BSRIA report suggest the European market will double to 415 million Euros by 2023.
Do you understand the different types of stone and which ones you should use where?
Why a wellbeing strategy is vital for property managers.
An ECA briefing for members about the commercial implications of leaving the EU.
A crucial moment on any project - and fraught with danger.
The performance gap from a Northern Ireland perspective.
Book review: Buildings of protestant nonconformity.
Design and testing for health and wellbeing - free download from BRE.
Retention in construction contracts.
Campaign for the reform of cash retentions.
The key points for the construction industry and BSRIA's response.