Nixa, MO asked in Business Law, Civil Litigation, Contracts, Real Estate Law and Banking for Missouri

Q: Can a lien be filed on real property for non-payment of an unsecured promissory note?

I loaned a start up business some money and obtained an unsecured promissory note because there were no assets. There have been no payments made on the note and the company now has assets, namely real property, Can a lien be filed against the real estate or any other assets the company now owns?

1 Lawyer Answer
Jennifer Sheila Kornblum
Jennifer Sheila Kornblum
  • Business Law Lawyer
  • Springfield, MO
  • Licensed in Missouri

A: Unfortunately, an unsecured promissory note cannot justify a lien on the real property. However, if you file an action and get a judgment for the amount of money owed on the promissory note, the judgment can be filed against the real property if the name on your judgment and the name of the owner of the real property are the same.

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