I am looking to put a lien on equipment that we are selling. We sell paint sprayers that range from $1,000 - $7,000 and I would like to put a lien on them until the customer has paid in full.
1 reply
May 8, 2019
That's an interesting question. First - it's worth noting that while some kind of payment security might be appropriate, mechanics lien rights will generally only arise when construction work or material is furnished to permanently improve real property. So, where work is not actually performed to improve real property, mechanics lien rights won't arise. Now, that doesn't mean that payment of a sale can't be secured in some way. A seller could always attempt to condition the sale so that failure to make payment allows recovery of the property. Or, a seller might "sell" their property under a rent-to-own agreement where the buyer doesn't actually own the equipment until all payments have been made. But, regardless of how it's done, it's likely a better idea to sell the property under an agreement that specifically sets out the ability to recover the property if full payment isn't made than it would be to attempt to lien already-sold equipment.