- June 06, 2007
- All Issuing Offices in Connecticut
- Connecticut Lien Guide
A lien has been described as a form of security interest
in real (or personal) property and includes (1) a charge against or an interest
in property to secure payment of a debt or performance of an obligation; or (2)
a security interest created by agreement; or (3) used to secure a monetary
judgment ordered by a court pursuant to a legal or equitable proceeding; or (4)
an encumbrance or security interest arising by statute or operation of common
law. See Connecticut General Statutes §52-552b (8);
For the most part a lien is a non-possessory form of security, which
can be categorized as consensual or non-consensual. Consensual
liens (i.e. "Purchaser's Lien; UCC-1 Financing Statement) usually arise out of
contractual relationships while non-consensual liens (i.e. -tax liens; judgment
liens or mechanic's liens) arise by statute or common law, which typically give
a creditor the right to impose a lien by the existence of the relationship of
the creditor and debtor. See C.G.S. §52-352b; C.G.S. §47-202; Senior Futures,
LLC v. Silvestri, 04-CBAR-0280 (2004) citing Paton v.
Liens are also perfected or unperfected. Perfection is
generally accomplished by taking certain steps required by law to give third
party creditors notice of lien. This notice establishes a priority right in the
encumbered property with respect to the other "notified" third party creditors.
See C.G.S. §47-258(d); First Constitution Bank v. Harbor Village
Attached please find a Lien Guide (Exhibit A). While not comprehensive, it provides for twenty (20) of the most commonly found liens on real property titles. It can be a helpful reference tool for attorneys, paralegals and title examiners as well. If you have any questions, please contact this office or visit our Connecticut Stewart Title website at www.stewartct.com.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
2007 Connecticut Lien Guide
|LIEN||DURATION||NATURE OF LIEN||STATUTORY REFERENCES||PLACE OF RECORDING||DISCHARGE|
|Federal Tax Lien||10 years + 30 days with additional 10 years if lien notice properly re-filed||Lien for any unpaid Federal Tax.||
26 USC §6321
|Corporate Business Tax Lien||
Due until paid.
|Lien for tax for the right to do business as a corporation in CT.||CGS §12-235
|Transfer of Controlling Interest Tax Lien||
Due until paid.
|Lien for tax on sale or transfer of controlling interest in entity owning an interest in real property over $2,000.00.||CGS §12-638j
|Municipal Tax Lien||15 years unless foreclosure action commenced.||Lien for unpaid municipal taxes.||CGS § 12-173
|Connecticut State Succession Tax*||Due until paid.||Lien for unpaid succession tax.||CGS §12-366||Town/Probate||
Tax Certificate from Probate Court
|Alcoholic Beverage Tax||Due until paid.||
Lien for unpaid tax on sale of alcoholic beverages.
CGS §12-441; CGS §12-435 CGS §12-35
|Mechanic's Lien||1 year from perfection, unless lienor records lis pendens and commences foreclosure action.||Lien for unpaid materials or services more than $10.00 furnished on lot or bldg.||CGS §49-33
|Town Clerk||Release; Bond or Expiration|
|Lis Pendens||15 years with additional 10 years if lis pendens properly re-filed and notice served.||Notice of action intended to affect real property.||CGS §52-325||Town Clerk||
Termination of the underlying court action; release or expiration of statutory term
|Attachment||15 years unless a judgment lien has been filed, then see Judgment Lien below.||Prejudgment remedy: A judicial lien to secure a potential judgment.||
CGS § 52-285
Release; Bond or Substitute Security
|Judgment Lien||20 years from date judgment was rendered unless foreclosure action commenced.||Lien for unpaid money judgment or portion thereof.||
Contract for Sale of Real Estate-Purchaser's Lien
|2 years from perfection unless foreclosure action commenced.||
Statutory Lien for deposit/paymentspaid as stated in recorded contract or notice of contract.
Release signed by all of the
|Broker's Lien||1 year from perfection (6 months for Option to Purchase or Lease), unless foreclosure action commenced.||Action to recover commission arising out of real estate transaction.||CGS §20-325a||Town Clerk||Release|
|Mortgage||20 years after date of final payment or 40 years if no final payment date stated. 10-year continuation upon proper filing.||CT is a title state although a mortgage deed is described as a "lien" in various statutes.||CGS §49-13a||Town Clerk||Release|
|State Financial Assistance Lien||Until discharged.||Repayment of state financial assistance received.||CGS §17b-79||Town Clerk||Release|
|Civil Action - Past Due Child Support Lien||Until discharged.||Lien for unpaid court-ordered child support of at least $500.00.||CGS §52-362d||Town Clerk||Release|
|Criminal Action- Bonds||6 years after forfeiture ordered unless AG's Office commences foreclosure action & records lis pendens within that time period.||Bail Bond.||CGS §54-66(b)||Town Clerk||Release|
|Private Water Company Lien||1 year with additional 14 years by proper filing of continuation.||Lien for unpaid water use charges.||CGS §49-72||Town Clerk||Release|
|Condominium Lien for Assessments||2 years from date full amount of assessments due if no action to foreclose commenced.||
|CGS §47-258||Town Clerk||Release|
|Condominium Lien for Common Expenses||1 year from perfection, unless foreclosure action commenced.||Unpaid common expense.||CGS §47-77||Town Clerk||Release|
|UCC-1 - Financing Statement||5 years - can be continued by proper re-filing at least 6 months prior to expiration.||Security interest on fixtures and personal property.||
CGS § 42a-9-515
|Town & Sec of State||
UCC-3 - Term. Statement