Alabama Lien: A Complete Guide to Liens in the State

A lien is a legal claim or hold placed on a person's property as security for the repayment of a debt. When a lien is placed on an asset, it gives the creditor the right to walk away with or sell the property until the debt owed is satisfied. Because lien laws and procedures differ from state to state, it is important for property owners, buyers, and creditors alike to be aware of the rules and procedures in their jurisdiction.

What Is a Lien in Alabama?

The definition of a lien in Alabama is not contained in a single statute. Instead, liens are addressed in various sections of Title 35, Chapter 11 of the Code of Alabama. According to the Alabama Department of Revenue, a lien is a claim recorded against a property or its owner to satisfy a debt or obligation.

Once recorded, liens become part of the public record and can alert potential buyers and lenders that a property has an outstanding obligation. For property owners, liens can make it harder to sell or refinance, so it is important for buyers to check for them before closing a purchase.

Types of Liens in Alabama

In Alabama, liens take several forms depending on the type of debt or obligation involved. One of the most common is the property lien, which is an agreement between the property owner and a creditor. This action gives the creditor a legal claim to the real estate and can prevent its sale until the debt is paid. On the other hand, a judgment lien arises when a creditor records a court judgment against a debtor's property. This type of lien is involuntary and results from a lawsuit. Therefore, the debtor must satisfy the judgment before the property can be sold or refinanced.

Contractors, subcontractors, or suppliers, who are not paid for labor or materials can file a mechanic's lien on a property to ensure they receive their payment. Likewise, the Alabama Department of Revenue (ADOR) may place a tax lien on a tax payer's property or assets to secure payment of unpaid taxes.

How to Search for Liens in Alabama

Once a lien is recorded in Alabama, it becomes a public record and can be searched by anyone to see if a property has outstanding liens. The main sources for finding these records include the following:

• County Probate Court or Recorder's Office: Each county in Alabama maintains lien filings as part of its property records, typically in the Recorder's Office. Liens can be searched by using the property's parcel number, address, or the owner's name.
• Online Property Record Databases: Many counties have designated online portals where users can remotely find lien information. The availability of these databases can vary by county.
• Third-Party Search Tools: Individuals may also find lien records through title companies or private platforms that offer this service.

In Alabama, lien records may include details such as the creditor's name, amount owed, filing date, and type of lien.

Lien Records in Major Alabama Cities

The procedures to find liens may differ slightly across locations because counties in Alabama maintain their own lien records:

• Birmingham (Jefferson County): To locate lien records in the Jefferson County Probate Court, interested parties may either visit the court's Land Records Office in person or search online via the Land Web portal.
• Montgomery (Montgomery County): Individuals seeking lien records in the Montgomery County Probate Court can contact the Records and Recording Division.
• Mobile (Mobile County): The Records Division of the Mobile County Probate Court allows public access to hospital lien records and other lien books, which are maintained digitally and on microfilm.
• Huntsville (Madison County): Lien records can be accessed in person at the Madison County Probate Office. Visitors may need to schedule an appointment at least one day in advance before visiting.
• Tuscaloosa (Tuscaloosa County): The Tuscaloosa Probate Office maintains searchable indexes for property and lien records.

Across all cities, in-person requests remain an option for those who prefer direct access or when online databases are incomplete.

How Long Does a Lien Stay on Property in Alabama?

In Alabama, how long a lien lasts depends majorly on its type:

• Property Tax Liens: These liens last for three years from the date the taxes are due.
• Mechanic's Liens: They last six months from the date the last item of labor or materials is provided. The lienholder can file a lawsuit to enforce the lien within that period of time.
• Judgment Liens: These liens last for 10 years but can be renewed before they expire.
• Mortgage Liens: Remain until the mortgage is fully paid and released by the lender.
• Tax Liens (IRS/State): They last until the unpaid taxes are fully paid.

A lien can still appear in public records if it is not released properly. Therefore, it is essential to obtain official release documents to avoid legal issues in the future.

How to Remove a Lien in Alabama

In Alabama, the ways to remove a lien are:

• Pay the Debt: Once the debt is paid, a lienholder can file a release with the county office.
• Negotiate a Settlement: Creditors may agree to accept partial payment or installment arrangements, followed by filing a release.
• File a Court Motion: If a lien is invalid or improperly filed, property owners can petition the court for removal.
• Obtain a Satisfaction or Release Document: The creditor must provide written proof that the lien has been satisfied. The owner must ensure it is recorded with the county.

Liens play a critical role in Alabama's property and debt collection system. They protect creditors while ensuring property owners meet their obligations. Moreover, it is important for anyone buying, selling, or managing property in Alabama to understand the types of liens, how to search them, and the steps for their removal. Since lien laws vary and errors can occur in recording, it is often advisable to consult an attorney, title company, or county clerk to ensure accurate resolution.