Bulletin: CT2007001

Dear Associates:

A lien has been described as a form of security interest in real (or personal) property and includes (1) a charge against or an interest in property to secure payment of a debt or performance of an obligation; or (2) a security interest created by agreement; or (3) used to secure a monetary judgment ordered by a court pursuant to a legal or equitable proceeding; or (4) an encumbrance or security interest arising by statute or operation of common law. See Connecticut General Statutes §52-552b (8);Connecticut v. Doehr, 501 U.S. 1 (1991) and Chevy Chase FSB v. Wheeler, 19 Conn. L. Rptr. 18 (1992).

For the most part a lien is a non-possessory form of security, which can be categorized as consensual or non-consensual. Consensual liens (i.e. "Purchaser's Lien; UCC-1 Financing Statement) usually arise out of contractual relationships while non-consensual liens (i.e. -tax liens; judgment liens or mechanic's liens) arise by statute or common law, which typically give a creditor the right to impose a lien by the existence of the relationship of the creditor and debtor. See C.G.S. §52-352b; C.G.S. §47-202; Senior Futures, LLC v. Silvestri, 04-CBAR-0280 (2004) citing Paton v. Robinson, 810 Conn 547, 548 (1909).

Liens are also perfected or unperfected. Perfection is generally accomplished by taking certain steps required by law to give third party creditors notice of lien. This notice establishes a priority right in the encumbered property with respect to the other "notified" third party creditors. See C.G.S. §47-258(d); First Constitution Bank v. Harbor Village Ltd, 230 Conn 807, 828 (1994).

Attached please find a Lien Guide (Exhibit A). While not comprehensive, it provides for twenty (20) of the most commonly found liens on real property titles. It can be a helpful reference tool for attorneys, paralegals and title examiners as well. If you have any questions, please contact this office or visit our Connecticut Stewart Title website at www.stewartct.com.