A property lien is filed by having proof that a debt is owed, obtaining a court order, and filing the court order, notes the Houston Chronicle. Once the lien is legally in place, the lien holder has the right to seize the property and sell it.Continue Reading
Proof of debt is established with receipts for the materials used to perform a service or a bill for the cost of labor, says the Houston Chronicle. Hourly billing statements are used as proof for accounting or legal services. That proof of debt is used to file a court order, also known as a judgment. The business or individual the lien has been filed against has a chance to make an appeal and avoid paying the debt if there is adequate proof.
If the court issues a judgment, it can be used to place a lien on the debtor's property by informing the appropriate county clerk, notes the Houston Chronicle. Once the lien is in place, the property can't be transferred from the current owner to another. If the debtor sells the property, the proceeds are used to take care of the outstanding debt. If the proceeds aren't enough to take care of debt in full, additional liens can be placed on the debtor's other assets.Learn more about Real Estate