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Can I place a lien on a property for a personal loan by the owner?

Hello, My wife has a personal loan of $25k to an LLC. The CEO of the LLC is personally guaranteed the loan. We would like to place a lien against the individual's residence. We believe there are other liens against the property but we want to be protected if the borrower defaults. Do you suggest we place a mechanic's lien?

1 reply

Jun 15, 2020

Mechanics lien claims are only available to those who have permanently improved real property. So, making a loan won't give rise to mechanics lien rights. With that being said, your wife and the CEO should be able to draw up paperwork establishing a lien against the CEO's property, and filing that paperwork with the county recorder to record the presence of that lien could be a pretty simple process. Hiring a New York attorney to help draw up the lien paperwork would help to make sure the instrument acts as intended - and these New York construction lawyers should be familiar with real estate law in the state, too: Find a New York Construction Lawyer.

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