Liens placed to secure payment in case of sale.The Business Journal has expanded its Data Bank listings with the addition of tax and mechanics liens. The following is an introduction to the new feature. Tax Liens Tax Lien A claim imposed by the federal government to liquidate a persons property until owing tax and debt is fully paid. Notes: Tax liens can be purchased from the government in the form of an investment. The Internal Revenue Service places a tax lien on property when the owner fails to pay property taxes. Liens are listed at the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County Registrar-Recorders office in Norwalk. Under the law, a 10 percent penalty is charged when a tax bill becomes delinquent, and additional penalties accrue starting on the second month of the delinquency. Once a property misses its first tax bill, the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. gives notice to both the property owner and the mortgage holder. The delinquency also triggers a tax lien against the property owner that is attached to every piece of property owned. Liens also affect the owner's credit score. The lien secures the payment of taxes: once the property is sold, the lien ensures that the IRS is in line to receive its share. The lien can be paid off by the property owner, or by the mortgage holder through an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. account. In Los Angeles County, if the property tax lien isn't paid after five years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time property may be seized by the county tax collector's office and sold at a foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. auction. The Business Journal listing contains the amount of the lien and the name and address of the entity that has been attached. Mechanics Liens Any provider of services to improve a property--such as a contractor, carpenter or plumber--has what's called mechanics lien rights. Architects, engineers and surveyors also are included. If the property owner fails to pay for the work or the contractor fails to pay the subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. , a mechanics lien can be placed on the property. Similar to a tax lien, the attachment is registered at the county recorder's office. The lien is a way of ensuring a spot in line for payment if the property is sold. Rather than wait for a sale, the claimant can start court proceedings for payment. Usually, a mechanics lien is filed within 120 days of the project being completed. The Business Journal listing contains the lien number, date and amount of the lien, address of the property and information about the claimant, contractor and owner. |
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