Lenders can place a lien on the trust that holds the deed to property.
A lien is a legal document that says the owner of the lien deserves payment for services or products rendered. After proper papers have been filed and the court decides you owe the money to the commercial lender, your debt is attached to your trust and your heirs must pay the bill. If you are already deceased, the lien is placed on the trust and any profits your heirs make from your property must be used to pay off the debt.
Instructions
1. Visit the Superior Court clerk in the county where the property is located to which you need to attach the lien. Many counties supply necessary forms online that you can fill out, print and return with appropriate signatures to the court. Each state has different laws regarding commercial liens and the paperwork required.
2. Fill out the forms and return them with copies of the paperwork backing up your claim. You may need copies of the contract, the agreed upon fees, any receipts for partial payments you may have received and documentation of the work you provided.
3. Receive notice of a court date when you must appear to present your case to a judge. Bring copies of all the documentation you filed as well as witnesses who can verify your claim. A commercial lien typically covers Realtors or brokers who have not received the compensation they were promised.
4. Ask the judge for a lien on the profits of the sale. If you are awarded a lien, the trust and its heirs cannot receive their inheritance until your debt is satisfied. On the other hand, by serving a lien to the trust, you may receive your payment before the property is sold, at which time the lien is satisfied and removed.
5. Pay the fees associated with the lien, which usually covers the costs of having a sheriff or deputy of the court serve the papers to the trustee of the holdings.
Tags: lien trust, have received, your claim, your debt, your heirs
