What is a Lien in Mississippi?
Liens in Mississippi are legal encumbrances placed on a property to secure payment from a borrower. Primarily, a lien ensures the repayment of a debt or the execution of a financial obligation. There are numerous forms of liens at the disposal of lenders in Mississippi; they include judgment liens, tax liens, mortgage liens, UCC (Uniform Commercial Code) liens, and mechanics liens. While a lien is proof of the lender's rights, creditors require a judicial order issued by Mississippi courts to enforce a lien within state limits.
Are Liens Public in Mississippi
Yes, liens are generally considered public information in Mississippi pursuant to the state’s Uniform Commercial Code. Once a lien is filed, it becomes a matter of public record, and anyone can access the information contained in the filing.
However, once the debtor satisfies the underlying debt, the lienholder must file a release of lien with the Secretary of State's office. After the release is filed, the lien is no longer effective, the property is no longer subject to seizure, and the lien is effectively expired.
Types of Lien in Mississippi
In Mississippi, liens may be specific or general.
While specific liens claim a particular asset, general liens provide the creditor with a collateral claim on all the borrower's assets. If a borrower fails to pay, a specific lien limits the remedy to a particular asset, while general liens give the lien holder a right to sell off all assets of the borrowing party.
Liens may also be voluntary or involuntary. Voluntary liens are established with the consent of the property owner or borrower. However, involuntary liens are usually imposed by judicial action.
A lien can be both voluntary and specific or involuntary and general in some cases. For instance, the Mississippi Department of Revenue (DOR) attaches liens on properties owned by individuals that fail to pay state taxes. These types of liens are called tax liens, and they are both general and involuntary. In Mississippi, a tax lien affects all the property owned by delinquent taxpayers. When the government places a tax lien on a property, the debtor cannot sell it unless it is sold to satisfy the lien.
How Do I Check for Liens in Mississippi?
In Mississippi, liens are considered public records. Hence, anyone in the state can query relevant agencies and public offices to view liens records in the state.
A title deed search through any county recorder office may help retrieve records of real estate liens in that particular county. At these offices, an inquirer may request to view the original records of a property's title deed and have copies made. However, requestors are usually charged a fee for copies.
Several county recorder offices also provide online databases useful for obtaining land records. General indexes are sometimes provided on these official websites and are used to verify liens remotely. An excellent example of these databases is the Rankin county land record database.
The State Tax Lien Registry maintained by the DOR can be used to check for tax liens recorded against any property in Mississippi. The office of the secretary of state also maintains a database of tax-forfeited lands that is easily accessible online.
Free Lien Search in Mississippi
In Mississippi, each county recorder office maintains land ownership records that can be requested to be viewed and copied by the general public. An inquirer may query relevant agencies at their physical locations. Some of these offices also provide online databases helpful for retrieving these records remotely. Some of the information on these databases may include construction and condominium liens, mortgages, etc.
Requestors are advised to visit the physical locations of relevant government agencies or offices to obtain complete records on liens attached to a property.
What is a Property Lien in Mississippi?
Property liens in Mississippi refer to all types of liens that lay claim to real property as collateral security. They include tax, mortgage, mechanic, and judgment liens.
When creditors want to secure payment from a borrower, they lay claim to property equivalent in cash to the amount owed, or from which parties can retrieve the cash amount owed upon sale. However, it is possible to have multiple liens on a property. In this case, the property may be foreclosed on and sold, and its proceeds split among creditors. If the proceeds are not enough to go around, it becomes a question of whose lien has a higher priority. Tax liens usually have priority, being government-oriented. Next are the mortgage liens. Other types of liens will emerge on the list in the order of priority.
Mississippi state laws protect owing parties by defining what property is exempt from liens. Exempt property includes tangible personal property not exceeding $10,000 in value, motor vehicles, trade tools, professional books, personal effects, and selected electronics.
How Do You Know if a Property Has a Lien in Mississippi?
In Mississippi, voluntary liens are established with the consent of the debtor or property owner; hence, they are typically aware of such liens. However, involuntary liens are not as straightforward since separate agencies are responsible for receiving lien filings. Inquirers will be required to query the appropriate agencies to receive information on liens filed against their personal property. However, these agencies can often only provide records of liens filed in that office or county.
A lien notice is usually sent to the property owner before the lien is filed against their property. These notices inform a property owner of any liens placed on their properties or futures lien that could affect such properties. However, encumbrances may be discovered when property owners try to sell, transfer, or refinance their property. This may occur in cases where the property's owners change their mailing addresses or receive mail through a different address.
In any case, a title deed contains information on the legal owner of a property and any claims on that property. These records (title deeds) are kept and maintained in the county recorder offices. Interested persons may find liens against property in Mississippi by requesting a title deed search through county recorder offices.
Requesters are also advised to hire a real estate attorney or title company to conduct thorough property searches. Additionally, obtaining a title insurance can also help to protect property owners against any unknown liens.
Property Lien Search by Address in Mississippi
Interested persons can conduct a property lien search by address in Mississippi by querying the recorder's office of the county where the property is located. In Mississippi, each county recorder's office serves as the custodian of public land records for their respective county. These records generally include liens registered against properties. It is important to note that a county’s chancery clerk usually serves as their county’s recorder in Mississippi.
Record seekers can visit the recorder’s office of the county where the property in question is located and request a title deed search to check for liens on a property. To conduct a title deed search, a record seeker must provide details about the property in question. This may include the property address or its owner’s name. Most county recorders also provide online search portals records that interested persons can use to search land records they maintain. Record seekers can use these portals to obtain different records involving real estates, such as deeds, liens, name change orders, and many other documents. Depending on the county, the portal may be accessible without any requirements, such as the Rankin County land record database and Harrison County land record database. Others, like the Forrest County land record database, require users to register an account or log in to access the database. The street name, street number, parcel number, and PPIN of a property must be provided to use these online databases to find liens on a property by address. The option to search by address is not always offered on some counties’ online land record databases. In such cases, record seekers can search by the legal description of the property or the property’s owner's name.
Free Property Lien Search by Address
A free property lien search by address can be conducted in-person at a county recorder's office. In most cases, inquirers can perform a free property lien search at a county recorder’s office and are only charged if they order copies of land documents. Record seekers are generally advised to contact the recorder's office before visiting them to inquire about whether it charges fees for a public record search.
An alternative is to use online land record databases most county recorder offices provide to find liens on a property. These databases are usually free to use. Similar to an in-person request, record seekers are only charged if they order copies of land record documents through the database.
What is a Tax Lien in Mississippi?
In Mississippi, a tax lien is a priority lien resulting from the failure to pay taxes on a property. The value of the pending taxes makes up a tax lien. The Mississippi State Department of Revenue ensures prompt payment of taxes and imposes tax liens on property of defaulting persons. The government may auction the lien at a county tax auction. Before doing so, the officer in charge of collecting taxes publishes a notice of sale for two weeks. (Miss. Code Ann. § 27-41-55). Those who purchase property liens are granted ownership of a property (Miss. Code Ann. § 27-41-59). Following the purchase, the property owner has two years to redeem the property (Miss. Code Ann. § 27-45-3, § 21-33-61). Suppose this timeframe elapses and the borrower does not pay the amount owed; In that case, the individual with the tax certificate gets the property's title deed and, consequently, full ownership. Tax lien applies to all forms of taxes in the state of Mississippi.
Tax Lien Lookup in Mississippi
The Mississippi Department of Revenue is responsible for recording tax liens against taxpayers in Mississippi. Hence, individuals who want to lookup tax liens can query the DOR. A tax lien is usually attached to a property due to unpaid property taxes. The DOR maintains the State Tax Lien Registry, which interested persons can use to remotely lookup tax liens in the state. The Registry contains a list of tax liens enrolled against taxpayers in the state. Note that tax liens are only added to the registry when they are no longer subject to appeal. Inquirers can search the registry for tax liens by using the lien ID or the name of an individual or business.
What is a Mortgage Lien in Mississippi?
A mortgage lien is an initiative of a borrower to purchase or refinance a house or vehicle. Mortgages are deemed secure loans. A critical step in any mortgage transaction is creating a lien on the property. Here is how it works:
A prospective home or vehicle buyer contacts a credit agency to request a loan with an arrangement to pay back in installments. The credit agency then purchases the property of interest and grants ownership to the lender. Should the buyer stop payment before due completion, the creditor can resell the house to another buyer. This is essentially a voluntary property lien.
If the indebted party cannot pay creditors and files for chapter 13 bankruptcy, they may retain the house regardless of their outstanding debt. However, in many cases, unless there is a homestead exemption, the debtor may lose the house foreclosure in Chapter 7 bankruptcy filings.
What is a Mechanics Lien in Mississippi?
A mechanic's lien in Mississippi is a legal tool that guarantees payment by securing a collateral claim on the borrower's property. They are involuntary liens on a specific property. It is a statutory transaction for parties embarking on a construction project who do not have sufficient means to pay the contracts. Contractors, in this case, may be architects, engineers, artisans, suppliers of materials, and workers. Mississippi has laws that grant the construction industry staff the right to claim a mechanic's liens. Filing a mechanic's lien in Mississippi works this way:
All contractors must file preliminary notices to the owner and prime contractor of the construction project. According to the law, the preliminary notice must contain:
- Information about the name, address, and phone number of the service supplier (labor, materials, or services).
- The terms of the receiver of service.
- Name and location of projects.
- A brief but precise description of the labor services and materials being provided.
Contractors must file the preliminary notice within 30 days from the date of service delivery. Subsequently, the petitioner must send the preliminary notice by one of these three: email, certified mail, or statutory overnight delivery. Contractors for smaller projects such as single-family residential buildings must notice intent to lien to the property owner within ten days before filing a mechanic's lien.
After that, they can file the lien as follows:
- Prepare the mechanic's lien document: the mechanic's lien document must provide information about the claimant's amount, a clear description of the property, the due date of claim, the full names of the claimant and the property owner. This lien claim expires within 180 days from the filing date unless payment action is filed within the time frame.
- Record the document: Record the document with the Chancery Court Clerk in the county where the project is located. Either submit in person or by email to the court along with the required filing fees. Although some third-party online sites also receive filings of preliminary notices and mechanics lien documents for advertisement, it is strongly advised that the contractor record a copy with the court. It may be helpful in the event of litigation.
- Serve copies to the relevant parties: contractors must serve copies of the mechanic's lien within 48 hours of recording with the court. Be sure to serve copies to the property owner and general contractor.
- Implement or cancel the mechanic's lien: the indebted party may decide to or not to pay. If the debtor fails to pay, the contractor has six months to initiate a foreclosure auction on the property. When this period expires, the mechanic's lien expires, subsequently invalidating the claim; unless there is a renewal. If the debtor responds by payment, the property holder can request to release the mechanic's lien on the property. Contractors must respond within 15 days of receiving the request. Failure to do so can incur penalties and fines.
What is a UCC Lien?
The acronym UCC stands for Uniform Commercial Code. The UCC is a series of legal opinions regarding commercial transactions. It is a federal code applicable in all states of the US, including Mississippi.
In Mississippi, UCC lien filings are a legal process involving forms filed by a creditor to secure the payment by a debtor in the event of a default or bankruptcy proceeding. A UCC lien is valid for only five years and renewable afterward as many times as possible, provided the debtor is yet to complete payments. Lenders can file a UCC lien against specific equipment or a general lien. The first to file a UCC lien on the property gets a priority position in the time of foreclosure and repayment. There is more uniformity and reliability in processing UCC liens than state-restricted liens. Creditors within or outside Mississippi to file for liens on property in the state. When payments are complete, the borrower must request the lender notify the Secretary of State to terminate the UCC lien. There are different filing procedures for each category of commercial transactions in the state.
How to Conduct a UCC Lien Search
Interested persons can conduct a UCC lien search through the Mississippi Secretary of State office. The MS SOS office maintains UCC filings throughout the state. The MS SOS offers two online search portals that interested persons can use to conduct a UCC lien search remotely. Inquirers can use the Public UCC search portal to conduct general searches of filed UCC documents. The portal only provides basic information about creditors and debtors named in each UCC documentation.
Meanwhile, the UCC subscription search portal can be used to conduct more detailed searches. Users of the subscription portal can view filed UCC documents. However, users must signup for the UCC subscription service to use the portal.
What is a Judgment Lien?
Judgment liens in Mississippi are court orders that enforce a debt payment to a creditor. The Chancery Courts across the state of Mississippi handle most cases of judgment liens. If the judgment creditor receives a favorable ruling, they can file the judgment as a lien on the judgment debtor's property. Irrespective of whether the judgment debtor has property, the record remains with the county records office until the debtor completes all repayments. It isn't easy to sell off or lease out property bearing a judgment lien, and creditors can initiate a foreclosure action with a judgment lien in hand.
What is a Federal Tax Lien
A federal tax lien is a charge or encumbrance the US government can place against a taxpayer's property when they refuse or fail to pay an overdue tax bill. The Internal Revenue Code (IRC) dictates how and when a federal tax lien can arise. According to I.R.C. § 6321, a federal tax lien can automatically be attached to a taxpayer's property after the government demands payment of an overdue tax bill. Federal tax liens are one of many tools the Internal Revenue Service uses to collect outstanding taxes from defaulters.
What is a Lien Title?
In simple terms, a lien title indicates that one party has a legal claim on a property owned by another party. A lien can be recorded against a property title when the owner owes an overdue tax bill, finances the property, or uses the property as collateral to get a loan. If the debt owed by the property owner is not fully paid when due, a title lien gives the lien holder the right to sell or seize the property to mitigate their losses.
Where and How to Do a Title Search in Mississippi
A title search involves examining public records to verify or determine a property's legal owner. Generally, a title search is used by property buyers to determine whether a property has a clean title. In other words, no claims, liens, or other encumbrances are recorded against the property.
In Mississippi, interested persons can conduct a real estate title search by querying the recorder’s office of the county where the property is situated to look up its title deed. A property title deed typically provides information on the property's current owner and any claim registered against the property. Meanwhile, a vehicle title search can be conducted through the National Motor Vehicle Title Information System (NMVTIS). Through the system, interested persons can check the history of a vehicle. The Mississippi Department of Revenue provides a helpful directory that contains information on how to use the NMVTIS to conduct a vehicle title search.
A title search is an extensive, time-consuming, and detailed-oriented process. Hence, interested persons are advised to hire a title company or an attorney to conduct a title search on their behalf.
Voluntary Lien vs. Involuntary Lien in Mississippi?
Liens could be voluntary or involuntary. A voluntary lien is established with the property owner's consent - an example is a mortgage lien. Property owners often initiate the process to obtain a loan or credit. An involuntary lien is established following a complaint or petition from a lender or creditor, often without the borrower's consent. The goal of an involuntary lien is to force the borrowing party to pay the pending debt. Examples of involuntary liens are tax, mechanics, property, and judgment liens.
How Creditors Collect Payment Through a Lien
In Mississippi, creditors can collect payments through a lien by enforcing the claim using a judicial order. When a lien is recorded against a property, the lienholder has a legal claim on that property. The lien provides a lienholder with the legal right to repossess and force the sale of a lienee's personal property. Other legal actions can also be taken against the lienee to satisfy their debt.
How Do I Get a Lien Removed in Mississippi?
In Mississippi, there are two ways an individual can get a lien that has been attached to their personal properties removed. The first method is for the lienee to satisfy the lien. Alternatively, the debtor may negotiate a lesser sum with the lienholder to remove the lien. However, debts usually attract penalties, interest, and fees that can also be added to the lien. Some liens, such as statutory liens, are subject to statutes of limitation (a lien's legal time limit is enforceable). Opting to wait out a lien's statutes of limitation is ill-advised as most liens are easily renewable.
Alternatively, the lienee can also challenge a lien validity in court to remove the lien from their properties. However, the court will only remove the lien if the lienholder can not prove the lien is legitimate.
How Long Does a Lien Stay on Your Property in Mississippi?
In Mississippi, the type of liens determines how long the lien can legally stay on a lienee's personal property. Involuntary liens such as an estate tax lien can remain on a lienee property for up to ten (10) years, while judgment lien typically last seven (7) years after a judgment has been entered. Meanwhile, mechanic lien holders are provided only 90 days to enforce their liens.
On the other hand, voluntary liens like mortgage lien can indefinitely remain on a lienee's property until the lien has been satisfied. It is important to note that most involuntary liens can be renewed, which would extend the time limit the creditor can enforce the lien.
