Can a loan to a family friend in MD be secured by by signing and notarizing a lien paper on his house/property.
Jan 21, 2019
Great question! When loaning money, it's certainly possible to create an encumbrance to secure the payment of the loan. Creating such a lien or encumbrance is pretty common, in fact. However, that's a little outside the scope of our expertise here at the Construction Legal Center - we regularly talk liens, but those are mechanics liens, and those lien rights specifically arise out of construction work performed but unpaid. However, there are some other online resources available that should provide some guidance here. One great resource is avvo.com. At their site, attorneys are available from all different locations and practices and they can answer questions on a variety of legal topics.