Home>Levelset Community>Legal Help>Is there a conditional lease document that would show a lien balance and the progressive payment plan?

Is there a conditional lease document that would show a lien balance and the progressive payment plan?

New YorkLien Releases

We have a customer of which we had process a lien against - Order #1619643 They want to make progressive payments of $50 K until it is payed in full. Is there any legal document that you offer and if so how do we work with Z-lien to keep you up to date on the situation.

1 reply

Sep 14, 2018

That's a great question, and the answer changes quite a bit from state to state. In New York, there are a few unique factors that should be taken into account when negotiating the payment of a lien claim. These factors are overwhelmingly positive for both New York claimants and owners, and they should make the process of obtaining payment for a filed lien a little bit easier. Before discussing the ability to partially release a filed lien claim, it's important to discuss lien enforcement deadlines and requirements - after all, a payment plan for a filed lien only works if that underlying lien is enforceable. Generally, New York liens are effective for one year after filing. That means, after the year, the lien is no longer enforceable, and unless suit has been brought to enforce it, the filed lien will no longer provide the same leverage. However, New York is one of very few states that allow for the lien enforcement deadline to be extended - potentially more than once. We discuss hat idea more in the following article: New York Liens – How Long Are They Effective? All of this is to say that, if a payment plan extends beyond the time frame during which the lien may be enforced, extending the lien may be necessary. Anyway, regarding the partial release of a lien, New York is also one of the few states that contemplates a lien being partially released. Under § 19(1) of the New York lien statute, a claimant can discharge their lien in whole or in part by providing a certificate to the lienor "...stating that the lien is satisfied or released as to the whole or a portion of the real property affected thereby and may be discharged in whole or in part, specifying the part." Note, though, that this section may be referring to a physical portion of the liened property being discharged from the lien claim ("the real property affected thereby and may be discharged in whole or in part, specifying the part.") As far as how to logistically handle discharging portions of a lien pursuant to a payment plan, one way to pursue partially releasing a lien as a payment plan continues might be to file a separate partial lien release that corresponds to each payment under the plan. Another option might be exchanging a written promise to release a corresponding portion of the lien when payments are made. Finally, another option may be to leave the lien completely intact and exchanging a written promise that, once all payments have been made, the lien will be released. As far as a _zlien_ product or form, currently zlien does not provide a document for this precise situation - but new products, forms, and documents are added every day! To keep up with information on your claim, it's probably best to remain in touch with either your zlien account manager or contact a support representative.

0 people found this helpful

Helpful