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Removing a Lien from Property
A lien is a type of security interest placed on a piece of property (real or personal) in order to secure a debt or some other obligation. While the underlying legal theories are different, in a practical sense, a lien is similar to a mortgage, in that the property which is the subject of the lien is taken and/or sold by the creditor to satisfy the debt of the property owner.
The surest way to remove a lien from a piece of property is to satisfy the debt that gave rise to it in the first place. A court will also remove a lien that was obtained through fraud, duress, or other unlawful means.
A lien can also be removed if the property that is the subject of the lien is sold or destroyed. However, the lien may follow the property to subsequent buyers, if they had reason to be aware of it. Fraudulently selling a piece of property to remove a lien will probably not succeed.
Also, a person cannot have a lien over his or her own property, so selling or giving the property to the lien-holder will remove it. Furthermore, a lien can be removed if the lien-holder fails to assert his or her rights under the lien for a continuous period of time.
Note that a lien is not removed if the lien-holder demands a sum in excess of the amount actually owed. As long as this demand is made in good faith (the lien-holder reasonably believes that he or she is entitled to the demanded sum), a lien will remain in place. However, a lien might be removed as punishment to the lien-holder if such a demand is made in bad faith, and involves fraud or threats.
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