Law Commons^™

Ending Surprise Liens On Real Property, Chad J. Pomeroy

Faculty Articles

Academics, lawmakers, and the general public have long believed that secret liens are problematic. In real property, these are liens that are not recorded in the real property filing system. Secret liens become especially problematic when they are enforced, despite their secrecy, against subsequent purchasers of the property. If the purchaser does not satisfy the lien by paying the underlying debt, the lien holder can foreclose on the property. One of the main purposes of having real property recording statutes was to avoid surprise liens (secret liens afforded priority over subsequent purchasers) and ensure that real estate purchasers and investors …