Tennessee Lien: A Complete Guide to Liens in the State

A lien in Tennessee is a legal claim against property that secures a debt. It allows the person or entity who holds the lien to use the property as collateral to collect the money owed. Understanding the Tennessee lien system is vital, as these laws are not uniform across states.

What Is a Lien in Tennessee?

The Tennessee Code Annotated sets out and governs the several types of liens that may be filed in the state. Certain parties, such as government agencies, lenders, judgment creditors, and suppliers, may attach a lien to property when a valid debt or obligation is owed. After a lien is recorded, it becomes a matter of public record and notifies lenders and purchasers of unresolved claims on the property.

Property owners may face a challenge in refinancing or selling their property when liens are present. Buyers, on the other hand, rely on lien searches to ensure a clear title.

Types of Liens in Tennessee

Among the liens filed in Tennessee, the most common types are:

1. Lien of Judgment on Real Property (§§ 25-5-101 — 25-5-109)

Commonly known as a judgment lien, a lien of judgment is a recorded debt tied to an individual’s property after a court decision. Before the property can be sold or refinanced, the outstanding judgment must be resolved since it follows the property.

2. Mechanics’ and Materialmen’s Lien (§§ 66-11-101 — 66-11-208)

This is the right that suppliers and subcontractors have to place a lien on property if they are not paid for work or materials. Until the debt is settled, the property owner does not have the right to sell the property.

3. Vendor’s Lien (§§ 66-10-101 — 66-10-105)

In Tennessee, a vendor’s lien is the right the seller has to claim property sold if the buyer does not pay the full purchase price. This is the seller’s built-in security interest for any unpaid balance.

4. Tax Lien (§§ 67-5-2101 — 67-5-2103)

A tax lien is an automatic claim placed on property when state or local taxes, such as property taxes, are not paid. The lien attaches by law and remains until the full amount of taxes is satisfied.

5. Mortgage Lien (§§ 66-5-101 — 66-5-213)

This lien arises when a mortgage or deed of trust is recorded in the county Register of Deeds. If the borrower defaults, Tennessee allows the trustee to sell the property without going through a court case.

How to Search for Liens in Tennessee

In Tennessee, some of the methods through which individuals can access lien records include:

• Abstractors or Title Companies: As part of a title examination, professionals can perform a lien search during refinancing or property sales.
• County Clerk’s Office: For certain liens, such as judgments and UCC filings, the county clerk may have searchable public records.
• Register of Deeds Office: Anyone can locate property and lien records in the Office of the Register of Deeds where the property is situated.
• Third-Party Services: To save on the cost of visiting government offices, record seekers may search private sites that compile lien and property records for a fee.

In general, most lien filings contain information such as the description of the property, lienholder’s name, the balance due, and the recording date.

Lien Records in Major Tennessee Cities

Typically, liens are recorded at the county level, and record seekers may access records both in person or online:

• Nashville (Davidson County): The best method to find lien records in Nashville is to contact the Davidson County Register of Deeds.
• Memphis (Shelby County): In Shelby County, the Register of Deeds provides access to lien records in Memphis through its Property Record Search portal.
• Knoxville (Knox County): At the Knox County Register of Deeds, the public may access lien filings such as construction liens, fixture filings, mortgages, and deeds of trust.
• Chattanooga (Hamilton County): The Hamilton County Register of Deeds maintains an online record search for accessing lien records within the county.
• Clarksville (Montgomery County): Lien records are available in person at the Montgomery County Register of Deeds during normal office hours.

How Long Does a Lien Stay on Property in Tennessee?

• Property Tax Lien: The lien continues indefinitely until the tax obligation is satisfied.
• Mechanics’ Lien: A mechanics’ lien in Tennessee lasts one year, unless the lienholder files a lawsuit to enforce it.
• Judgment Lien: This lien, once filed, is valid for 10 years from the date of recording.
• Mortgage Lien: A mortgage lien is valid until the mortgage is paid.
• Tax Lien (IRS/State): Like a property tax lien, it remains effective until the tax and penalties are paid in full.

An unreleased lien may remain in public records even after the debt has been paid, which can create obstacles to obtaining a clear title.

How to Remove a Lien in Tennessee

1. Court Petition: Debtors can file a petition in the court to remove a lien if it is expired or invalid.
2. Negotiating a Settlement: Creditors may agree to accept payments at a reduced amount in exchange for releasing the lien.
3. Expiration of Lien: If not enforced, some liens can expire after a set period.
4. Lien Release: Even after repayment, property owners should confirm that the lienholder records the release with the Register of Deeds to clear the title.

Liens are fundamental to the enforcement of property and debt in Tennessee. They tend to protect the interest of the claimant and require debtors to fulfill their obligations. Due to the complexity of the law, buyers and property owners are encouraged to seek help from a title company, an attorney, or the register of deeds to ensure liens are properly addressed. With the right steps, property owners can maintain clear titles and enjoy smoother real estate transactions.