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?
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.