What is a Lien in Montana?
In Montana, a lien is a legal claim conferred on an individual that allows the party to keep property belonging to a debtor to recover an outstanding debt or duty. The person that owns the property is called the lienee, while the party benefiting from the lien is the lienor. When a lien is placed on a property, it prevents its owner from transferring ownership or selling it until the debt's requirements are met. They can be enforced with a judicial order typically issued by Montana courts. Liens are public records that inform potential creditors and any concerned party about unpaid debts.
There are several types of liens, such as tax liens, property/construction liens, mortgage liens, mechanics liens, and judgment liens. However, they may all be categorized into two types: general and specific liens.
- General liens: A lien is general when it isn't attached to a specific belonging. Therefore, if there is a default, the lienor can have any of the debtor's belongings as collateral.
- Specific liens: A lien is specific when placed on one of the borrower's properties. In this situation, if the lienee defaults, the lienor can only hold onto that specific belonging mentioned in the agreement.
In Montana, liens are categorized as either voluntary or involuntary. The lien is voluntary if the lienee consents to it; an example is a mortgage lien. On the other hand, a lien is involuntary when placed on a property without the owner's consent.
Are Liens Public in Montana
In Montana, liens are public records under MCA § 71-3-101. According to the statute, the public is entitled to access to these records from both state and county custodians. However, a lien will seize to be public information after it has expired or its requirements have been satisfied.
Types of Liens in Montana
In Montana, liens can be consensual or involuntary. Consensual liens arise from contracts between property owners (the debtors) and service providers (the creditors). Here, the debtor consents to a lien to secure a loan or credit advance to purchase a piece of property (real estate or a vehicle). One example of a consensual lien is a mortgage lien.
On the other hand, involuntary liens result from the operation of state or federal laws. When creditors apply existing state laws to secure the payment of debts via a lien, the lien is said to be involuntary or statutory. Examples of involuntary/statutory liens are tax liens, Uniform Commercial Code (UCC) liens, agricultural liens, judgment liens, and construction or mechanics liens.
How Do I Check for Liens in Montana?
In Montana, liens are recognized as public records. As a result, they are accessible to anyone. Typically, when searching for liens in the state, one must know where a property lies. This will assist the individual in knowing the appropriate agency to query.
The clerk and recorder of each county handle real estate lien records. Hence, property owners and people interested in looking up the records can stop by the office to search in person or check the clerk's website for a lien search tool.
For UCC liens, individuals may search online via the epass Montana platform provided by the Montana Secretary of State. First-time users must create an account to use the system.
Interested persons can contact the Vehicle Services Bureau for vehicle liens filed in Montana. The agency requires the registered owner's name, address, and Vehicle Identification Number to process a request.
Free Lien Search in Montana
Access to lien records in Montana is free. To carry out a free search, a requester can visit the clerk's office and recorder in the county where the property in question lies. Searches are also accessible online via platforms provided by the relevant government agencies. However, a fee may be required to duplicate a record.
What is a Property Lien in Montana?
In Montana, a property lien gives a lienor the right to a lienee's property when a debt or an obligation is owed. The Montana legislature allows the enforceability of a lien attached to a real estate, as stated in Section 71-3-521. A Montana property lien should be licensed and filed at either the state department or the county recorder's office. A notice is then sent to the property owners, informing them of the lien action.
How Do You Know if a Property Has a Lien in Montana?
When a creditor files a lien against a property owner, the latter may receive a notice of the lien. In several cases, the Montana Code Annotated (MCA) mandates creditors to serve property owners with a copy of the lien. Creditors usually deliver this notice by personal service or certified mail with the requested return receipt.
Every so often, a property owner may miss this notice. A third party with interest may also be oblivious to it. Hence, to confirm the lien status on a property, interested parties may visit the relevant clerk and recorder's office (the one located in the county where the property lies) to make inquiries. An individual may also search the clerk and recorder's website for lien information. However, records managed by the clerks concern liens on real estate.
Interested persons may also contact the Montana Secretary of State (for UCC liens) and the Vehicle Services Bureau (for vehicle liens) for liens on other property types.
Property Lien Search by Address in Montana
Interested persons can search for property liens by address in Montana by using the property information search tool available on the Montana official state website. A link to this tool can also be found on the Montana department of revenue website under the property assessment division section. If there are any liens recorded against the property, they will be listed in the search results when a property is searched for by address or parcel number. The lien holder's name, the date the lien was registered, and the lien's amount are usually included in the lien information. Persons can also search for property lien information on the database provided by the Montana state library online called the Montana castadral. It is also essential to be aware that occasionally these databases might not contain the most recent information on property liens, this may require interested persons to check with the county property records office or the county clerk and recorder's office if the property they are looking for is not listed on the website.
Free Property Lien Search by Address
By using the property search tool of the Montana Department of Revenue, anyone can perform a free property lien search in Montana. To search for a property, a person would need to go to the website, choose "Property Search" from the top menu, type the property's address into the "Property Address" area, and then click the "Search" button. The person would next need to choose the property they are interested in from a list of properties that correspond to the address they entered in the search results. The person can read details like the owner's name, the property's legal description, and its value on the property detail page. They can locate the "Liens" section by scrolling down, which will display any active liens.
What is a Tax Lien in Montana?
A tax lien in Montana is a legal claim by the government against an individual's business or property who owes taxes (SB 253 of the Montana legislature). Tax liens allow the government to hold the property until the taxes are paid. The owner of a liened property in Montana cannot sell or refinance that property unless the lien is removed.
The Internal Revenue Service (IRS) and local government may collect taxes through a lien in some cases. This applies to all kinds of taxes, including federal income taxes and property taxes. According to the U.S NTLA (National Tax Lien Association), about 14 billion dollars worth of property taxes were not paid in 2017. Subsequently, the government sells about one-third of those liens to interested investors.
Tax Lien Lookup in Montana
The Montana Department of Revenue's Property Search website allows users to search for tax liens throughout the state. Users of the website can look up property data using the address, parcel number, or owner name. The information about the property, including any registered tax liens, and unpaid property taxes will be shown in the search results. A tax lien look-up in Montana can also be performed using the lookup tool on the Montana secretary of state website, here interested persons can search for tax liens using a lien number. A lien number is a unique identifier assigned by a county or state government to a specific lien that has been filed against a property. A lien number can be used to find liens on a property.
What is a Mortgage Lien in Montana?
A Montana mortgage lien empowers a person or organization to seize a home until the debtor reimburses them fully. Mortgages are secured loans that result in a mortgage lien on an asset. This implies that even if the homeowner avoids regular payments, there is some form of collateral protecting the creditor's interest. A mortgage lien is a type of property lien.
What is a Mechanics Lien in Montana?
A mechanics' or construction lien in Montana can be attached to a property when contractors and suppliers do not receive payments for their work on a construction project. In such cases, the Montana laws empower them to file a mechanics' lien. Generally, a mechanics lien entitles the petitioner to a security interest in a particular property. In Montana, mechanics' liens are meant for construction workers, suppliers, and anyone who provides materials or labor in a real estate contract.
What is a UCC Lien?
According to the Uniform Commercial Code, UCC liens are petitions against a person's business asset. For instance, if a party borrows money under the Code, the lender may claim the borrower's assets. When an organization shuts down, a UCC lien enables the lender to collect what is owed. The UCC is a body of business laws binding every U.S state. However, the UCC does not apply to the following contracts:
- Employee-employer contracts
- Service contracts
- Real estate contracts
A UCC lien typically expires after five years in Montana. However, the lender may petition to renew the lien. When a lien is paid off before the five years are over, the lienee can tell the creditor to terminate the lien.
How to Conduct a UCC Lien Search
Individuals can conduct a UCC lien search for free on the Montana secretary of state database. Lien searches are performed using the lien number, identifying the document of interest. To get copies of lien documents in Montana individuals can use the UCC copy request form option to request copies. This is located on the website's home page under Copy/Search Requests or under "Forms" in the left menu. Numerous options exist for customizing this search and requesting copies. The filing fee for requesting copies of UCC information is $5-$7.
What is a Judgment Lien?
In Montana, a judgment lien allows an individual (a creditor) who won a civil case to collect what is owed from the losing party (the debtor). This entitles a creditor to payment from the proceeds after the debtor's property is sold. A judgment lien is automatically attached to a debtor's present and future properties in Montana. However, liens are county-specific. Hence, they only apply to the county where the case was judged. To claim properties in another county, the lender will have to file another judgment lien in that county with the district court clerk.
A judgment lien stays on the debtor's property for ten years unless the lienee pays the debt. The lien remains on the property even if the property changes ownership. However, a lienor should note that several factors can hinder collecting the proceeds. These factors include:
- The property's fixed value cannot be touched if it is the debtor's principal residence.
- There may be other judgment liens attached to the property.
What is a Federal Tax Lien
The Internal Revenue Code (IRC) 6321, defines a federal tax lien as a legal claim the government has against a taxpayer's assets when they disregard or fail to pay a tax obligation.
According to Montana state law MCA 71-3-101, a "lien" is also a charge placed on a specific piece of property in a manner other than through a transfer in trust that makes it secure for the execution of an act. There are two types of liens: general and special.
A federal tax lien typically lasts until the whole amount owed is paid or the Collection Statute Expiration Date (CSED) passes, at which point it ceases to be enforceable against the property of the taxpayer.
What is a Lien Title?
A lien title acts as a notice to any prospective buyers or lenders that the property is encumbered and indicates that there is a lien against it. The property title lien normally includes the lien holder's name and the lien amount. Although the lien title does not change the property's ownership, it does grant the lien holder specific rights over the asset, such as the ability to foreclose on the property in the event that the obligation is not paid. Mortgages, home equity loans, liens for unpaid property taxes, mechanical liens, and judgment liens are a few types of liens that may be attached to a piece of real estate.
Where and How to Do a Title Search in Montana
Individuals can use the property assessment division property information look-up tool to perform title searches on any property in Montana. interested persons can use this tool to perform a title search by using the property's address to query the database. A title searcher or title abstractor will examine a number of public records, including deeds, mortgages, tax liens, and court records, to ascertain the ownership history of a piece of property. This procedure will show whether there are any unpaid taxes, utility bills, liens, judgments, or other encumbrances on the property that may need to be settled before the property may be transferred to a new owner. It is also possible to perform a title search by visiting the relevant county or city agency, such as the land registry office or county recorder, to view the public documents.
A number of third-party websites provide title search services on behalf of paying customers. Blue streak document retrieval in Montana is one instance.
Voluntary Lien vs. Involuntary Lien in Montana
In Montana, a lien can be voluntary or involuntary. A lien is voluntary when an individual consents to the terms outlined in an agreement. Usually, voluntary liens involve mortgage agreements. If the borrower fails to reimburse the creditor adequately, the lender must claim the house.
On the other hand, involuntary liens are legal claims attached to a property by others (for instance, the government) for unpaid dues. The most common type of involuntary lien is the tax lien.
How Creditors Collect Payment Through a Lien
Any creditor who perfects a lien on a debtor's property in Montana has the legal authority to enforce the debt repayment. Usually, the creditor does this by seizing and selling the liened property to recover the owed sum.
How Do I Get a Lien Removed in Montana?
Various liens have different removal processes in Montana. Once the debtor sorts the debt, the creditor will mail a completed Notice of Security Interest or Lien Release form to the Vehicle Services Bureau (VSB) to remove liens on vehicles. The VSB's mailing address can be found on the Department of Justice's website.
However, once the debtor makes the payment, the party must send a formal request for removal to the lienholder when it concerns construction liens. The lienholder has five days to release the lien. Failure on the creditor's part to file a release can attract penalties from the law.
How Long Does a Lien Stay on Your Property in Montana?
In Montana, several statutes of limitations speak to how long a lien remains valid on a property. For instance, judgment liens remain valid for ten years, while construction liens have a validity period of two years.
Once a creditor fails to enforce a lien and its statutory period expires, the creditor must forfeit the debt. To avoid such forfeiture, the creditor can apply for a renewal to gain more time for debt collection.
How to Avoid a Lien in Montana
The best approach to avoid liens on properties in Montana is to honor any repayment agreement made with lenders. Individuals should also make efforts to avoid accruing debt, as it is the main reason for establishing liens.
