Enforcing a Lien in Washington State
In Washington State, many mechanisms exist to enforce a debt. One of the most powerful mechanisms is the claim of lien. At its most basic definition, a lien is a claim to the personal or real property of another who owes the creditor money. With respect to real property, a lien creates an encumbrance that can often prevent a property owner from refinancing or selling that property without first addressing the lien. As such, a lien serves as a powerful tool for collection of a debt.
Many people operate under a common misconception that they can automatically record a lien against another person’s property for failure to pay a debt. Indeed, the exclamatory statement of: “I’ll just record a lien!” comes up often, and unfortunately, often without proper legal context and understanding.
Only certain classes of creditors can immediately record liens against property to secure the debt owed. These classes of creditors include, but are not limited to, the following:
- Many construction contractors can record a lien against real property to secure a debt owed under RCW 64.04. However, RCW 60.04.091 requires that the contractor record the lien within 90 days after the contractor has ceased to furnish labor, services, materials, or equipment. Furthermore, RCW 60.04.141 requires the filing of a lawsuit to foreclose on that lien within 8 calendar months after its recordation. Failure to meet these requirements can invalidate the lien.
- Condominium and homeowners’ associations can also typically record liens against real property under the terms of their governing documents, and under RCWs 64.32, 64.34, 64.38, and 64.90 depending on the category of association.
- Attorneys can record a lien for compensation against certain personal property under RCW 60.40.
- Landlords can record a lien for two months of rent against personal property used or kept in the rental premises under RCW 60.72.
The examples above are non-exhaustive, but all constitute examples of nonconsensual liens for failure to pay a debt. In other words, the debtors do not expressly consent to their recording. Consensual encumbrances on real property, such as deeds of trust utilized by lenders, are also very common, and the grantors of those encumbrances typically sign off on the documents.
Many creditors cannot immediately take advantage of the power of a lien. They cannot simply record a lien to enforce a debt. Instead, they must sue in court for nonpayment of the debt, obtain a judgment in their favor, and only then, will they have lien rights in relation to enforcement of payment of the debt. In this case, the judgment itself serves as a lien against all the real property owned by the debtor in the county in which that judgment is entered – a/k/a, a judgment lien. Additionally, the judgment can be domesticated and enforced in other counties. Recording the judgment can also afford additional protections.
The process of enforcing payment of debt, obtaining judgments, and/or recording valid liens can become complicated quickly. The attorneys at Beresford Booth have significant experience representing a variety of creditors in many different contexts. Please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.
