Alabama Lien Search

A lien search in Alabama uncovers any existing liens on a property or real estate within the state. This process verifies that the property title is free from encumbrances and safeguards the financial interests of buyers, preventing them from potentially inheriting property debt. In Alabama, lien searches are performed by searching public property records maintained by Probate Judges of Alabama County Courts or the Office of the Alabama Secretary of State. Alabama civil courts hear lien-related cases; thus, their records are also managed alongside Alabama civil court records. 

What is a Lien in Alabama?

A lien in Alabama is a legal claim that creditors take against a property or its owner to satisfy an unpaid debt or obligation. The property may be land, houses, vehicles, or any other personal property. Until the debt is repaid, creditors may assume legal ownership of property. Likewise, the debtor cannot sell real estate property that is liened or transfer ownership of an asset with a lien. If the debtor fails to fulfill their obligation, the lien holder may institute a legal action to seize or foreclose on the property and satisfy the debt with proceeds from the sale. 

Types of Liens in Alabama

Title 5, Chapter 11, Section 35-11-1 of the Alabama code and statutes provides that members of the public may claim liens for mortgages, labor, or unpaid taxes. The following are a few of the types of liens in Alabama:

• Mortgage liens;
• Stumpage Liens;
• Judgement liens;
• Federal Tax liens;
• Mechanics liens;
• UCC liens.

According to state laws, most liens are either general, specific, voluntary, or involuntary and statutory.

General Liens in Alabama

General liens affect every property and asset that a debtor owns. For instance, the government may place a lien on an individual's cars, land, or vehicles if they fail to meet their debt obligations. In this case, the lienholder may sell any of the debtor's assets to recover their loan or debt. Some examples of general liens include tax, bank lien (or liens on bank accounts), and judgment liens. 

Specific Liens

Specific liens, as their name suggests, attach only to a named asset or property. For example, mortgage liens do not affect the debtor's other real estate property or assets.

Consensual vs Involuntary Liens

With a consensual or voluntary lien, the debtor and creditor voluntarily agree to the collateral property and the contract terms. This applies to car or mortgage loans. On the other hand, debtors have no say over the terms of an involuntary lien. They are typically imposed per Alabama state law and statutes without a mutual contractual agreement following unpaid taxes or a court judgement. Some examples of involuntary liens include mechanics liens or tax liens.

Statutory Liens

Statutory liens operate in similar terms as involuntary liens. They do not require the mutual agreement of debtors and lien holders. The state automatically imposes them on the property to ensure swift recovery of debt or an underlying obligation. Statutory liens may affect lands, buildings, money, or equipment.

What is a Tax Lien in Alabama

In Alabama, a tax lien is the government's legal claim over a taxpayer's property due to undisclosed income or property tax default payment. Per § 40-1-2, tax defaulters attract a lien in favor of the state upon all their property or rights to property. 

Tax liens become valid against the mortgagee or creditor of the same property when the Department of Revenue or probate county court (where the property is situated) files a notice. 

Alabama tax liens are generally recorded in the county where the property is located. Once the state registers a lien, its validity continues until the assessed tax rate is satisfied. This is usually 10 years from when the tax lien is filed.

If a person satisfies the provisions of an imposed tax lien per § 40-29-20, the DOR shall file a notice of release to the individual with a lien claim. Likewise, the department shall record the lien release in the county where the original tax lien was recorded and in the office of the Secretary of State. 

Are Tax Liens Public Records in Alabama?

Yes. Tax liens are public records in Alabama per Alabama Open Records Law (Code of Alabama § 36-12-40). This provides that members of the public can inspect or request copies of tax lien records from a public office. 

A Notice of Tax Lien typically informs the public that the state has a claim over a person's assets, including property that the person may have acquired after the lien is filed.

Alabama Tax Lien Search

Under § 40-2-11, the Alabama Department of Revenue is the official custodian of all tax-delinquent personal and real properties across all Alabama counties. Thus, interested persons seeking information on property tax liens in Alabama may query the county Department of Revenue where the property is located.

Inquirers may perform a tax lien search with the debtor's name, property description, instrument number, document type, book number, and record date. 

The following search options are available to the public: 

Online Portal: The Alabama Department of Revenue provides an official records portal for interested persons to find tax-delinquent properties, including the assessed value of properties for sale. Each county property transcript is also available on the website under the county where the property was assessed. Some counties, like the Jefferson County and Franklin County Revenue Departments, provide a database for tax lien information. 

Physical Visit: Inquirers who need help finding helpful information via the custodian's online portal may visit the county DOR's Property Tax Division during office hours. The office also provides a record request form for mail inquiries. The state usually holds a public tax auction for unpaid tax-delinquent properties.

Federal Tax Lien Search

A federal tax lien lookup in Alabama should begin from the office responsible for filing tax liens, lien notices, or tax certificates. 

The code of Alabama § 35-11-44, cited as the Alabama Uniform Federal Lien Registration Act, outlines a few guidelines for recorded notices of federal tax liens:

• Federal liens for real property are filed in the County Probate Judge in the judicial district where the property is situated;
• Federal liens for tangible and intangible personal property against a corporation or partnership are filed with the secretary of state's office. However, this only applies if the entity is categorized under the Internal Revenue laws of the US;
• Other federal tax liens on personal property may be filed with the county probate judge in the applicable jurisdiction. 

Federal liens filed in the office of the probate judge are obtained per standard county procedure. On the other hand, the UCC Division handles all UCC federal tax liens. Persons interested in looking up UCC liens should first review the UCC-1 financing statement form and assemble information like: 

• Debtor's Name (Provide the exact or full name of the debtor)
• Mailing address
• Secured party's name
• Collateral

The UCC brochure contains a full breakdown of the procedures and costs for federal tax lien lookup. For example, a debtor name search costs $20, including printed copies, at $1 per page. In contrast, copy requests by file number cost $1 per page.

How to Find a Lien on Property in Alabama

A lien on property in Alabama is a legal claim an individual or organization holds against real or personal property to ensure full debt repayment. Real property includes immovable assets like land, land improvements, and buildings. On the other hand, personal property includes livestock, jewelry, equipment, machinery, vehicles, and other collectibles. 

Alabama code, Article 5 outlines the rules governing real and personal property liens in Alabama.

Who Can Put a Lien on a Property?

Following debt negligence, any creditor can put a lien on the real or personal property of a creditor. Alabama state legislature does not restrict the right to impose liens to a specific body. For example, a contractor may file a mechanic's lien on a property if the owner fails to satisfy the terms of their agreement after the work is completed. The government may also impose a tax lien on all assets for unpaid tax. 

How to Put a Lien on a Property in Alabama

Creditors may put a lien on a property in Alabama by following these steps:

Step 1: Verify Property Ownership

First, creditors must verify that the debtor owns the property in question. Afterward, they must check for existing liens on the property and the recording date. The state addresses lien filing on the grounds of priority, and a property cannot bear liens from different people. Also, state liens are prioritized over those imposed by individual creditors. 

Step 2: File Notice

The creditor may proceed to file a verified statement of lien with the office in charge of the real or personal property. This is either the office of the County Probate Judge, the Department of Revenue, or the Secretary of State.

Step 3: Duration for Verified Statement of Lien

The mandated time frame for filing this verified statement of lien depends on the status of the creditor filing the claim. For example, a contractor may file this claim within 30 days of providing labor to the debtor. Claimants like suppliers and subcontractors without direct agreement with the property owner may file the claim within 4 months of supplying the material or completing the project. 

Step 4: Enforce the lien

Lien claimants may need to file a lawsuit to enforce the lien. This is typically within 6 months after the maturity of the debt. Probate courts describe this phase as the grace period for the debtor to settle debt to the lien claimant. The court or office where one files a notice of verified lien may serve the notice to the debtor or have the claimant handle it privately. 

A lien claimant may discharge the property lien whenever the claim is due or before the right of property redemption is foreclosed. In this case, they no longer have the right to claim lien benefits. 

How to Find a Lien on Property in Alabama

Alabama legislature mandates lien claimants to file a written notice of lien to the property owner before taking further steps. Hence, most owners are often aware of the lien on their property. However, prospective investors or real estate buyers are advised to conduct a title or land records search on real estate before taking further steps. 

Inquirers may proceed with this search through the County Probate Court Land Records office (also called the Record Room) or the Office of the Secretary of State. Interested parties may also hire a title company or an attorney to find liens on real or personal property in Alabama. 

The Secretary of State's Government Records Inquiry System allows users search for property liens by:

• Name
• County, Range, and Section
• Book or Page Number

Property Lien Search By Address

Interested parties can conduct a property lien search by address at the probate office in the county where the property is located. Some probate offices also maintain an online portal where inquirers can run a property lien search by address remotely. For example, Jefferson County provides a property search portal that allows users to search by address, property name, parcel number, and mailing address.

The secretary of state also permits inquirers to conduct a property lien search by county, range, and section. Third-party aggregator websites also offer this type of property lien search. 

Free Lien Search on Property in Alabama

Interested persons may conduct a free lien search on property via online portals provided by the county record custodians. In Alabama, this is either the County Probate Court or the County Department of Revenue. While property lien information can be viewed at no cost, inquirers seeking to reproduce certified copies of these documents may be charged a nominal fee. 

What is a Mechanics Lien in Alabama?

An Alabama mechanics lien, "also called a material man lien," is a legal claim placed on a piece of property to claim unpaid fees for labor or property improvement. These liens become necessary when an owner fails to settle a contractor, firm, corporation, agent, architect, or subcontractor for finished work. In this case, work encompasses repairs, land or building improvement, alteration, or waste disposal services. 

When the property owner fails to fulfill their financial obligation, § 35-11-210 authorizes the contractor to declare a lien on the same property where the work was done. 

Mechanics liens are effective within the boundaries of property ownership, title, and interest belonging to the owner. Likewise, a mechanics lien imposed on a real or personal property must match the value of the unpaid balance. 

This action could hinder the property owner's project and possible investment. Contractors shall only file a mechanics lien within 6 months after completion of work. On the other hand, the day laborer shall file a lien within 30 days after completion of labor. 

Alabama circuit courts exercise jurisdiction over disputes for amounts exceeding $50. In other cases, the district court is responsible for handling the matter.

Alabama Mechanics Lien Search 

Alabama mechanics' liens are typically handled by the circuit or district court of the county where the property is located. Hence, an Alabama mechanics lien search may be performed by querying the county circuit clerk's office. Requesters will need to provide information pertaining to the property, the debtor, and the creditor to facilitate the search. Where copies are required, they may also need to cover the cost of duplication and/or certification. 

What is a Mortgage Lien in Alabama?

An Alabama mortgage lien is a collateral that a property owner deposits in exchange for a loan or credit. The lien arises when the borrower signs a mortgage contract, granting the lender legal ownership of the real or personal property. In this case, the mortgagor assumes immediate ownership of the property if the mortgagee fails to pay back within the stipulated time frame. The lender also reserves the right to foreclose the property if the borrower fails to resolve the debt. However, if the mortgage does not assign power of sale to the grantor, they may only foreclose the property in a court within the property's jurisdiction or sell for cash at the courthouse door. § 35-10-1 outlines Alabama's provisions for filing and enforcing a lien within state limits. 

What is a UCC Lien in Alabama? 

A Uniform Commercial Code Lien in Alabama is a security interest in collateral or personal property for debt repayment. The UCC represents a set of rules guiding commercial transactions within the cotton state. 

A UCC lien gives the lender an advantage in securing property lien priority in the case of bankruptcy or debt repayment. Thus, if the debtor fails to settle their loan, the lender may sell the security item to settle the debt. Alabama UCC liens are valid for 5 years.

Eligible persons may file a UCC financing statement at the Office of the Secretary of State. The UCC Division requires applicants to submit the UCC-1 form with the filing fees. The SOS website provides Additional forms and guidelines to follow.

UCC Lien Search Alabama

The Alabama Secretary of State is the central repository of all information on Alabama UCC liens. Interested persons can either search using the SOS's Government Records Inquiry System or request copies of these records via mail. 

Available search options include:

• Advanced Search (with Images)

This search costs $1 per page. A UCC advanced search by name costs $15 per search and $1 per page. 

• Simple Search (Without Images): These can be done at no cost
• By Debtor Name (First and Last Name)
• By Filing Number

Inquirers can find UCC lien information like a person's name, filling date, type, status, and expiration date. Also, financing statements, including secured party, filing date/time, debtor information, and pages fled. 

Members of the public may visit or contact the UCC division via these means:

Physical Address

770 Washington Avenue

Suite 580

Montgomery, Alabama 36104

Mailing Address

PO Box 5616

Montgomery, Alabama 36103-5616

Phone: (334) 353-0203

What is a Lien Title in Alabama?

A lien title in Alabama is a legal claim on a mobile asset or vehicle due to an unpaid loan. Creditors typically impose a loan on a vehicle's title used as security collateral until the debtor settles the loan. The creditor may sell the vehicle to settle the debt if the debtor fails to pay up. 

Whenever the debtor fulfills the debt, the creditor or lienholder must file a Lien Release Statement to revoke the existence of liens on the vehicle's title. Once this is done, the Motor Vehicles Division of the Department of Revenue issues a certificate of title to the debtor. 

Alabama Title Lien Search

Persons seeking to perform a title lien search in Alabama may query the Department of Revenue Motor Vehicle Division. To begin, inquirers obtain the Vehicle Identification Number (VIN) of the vehicle of interest. 

For ease of access, requesters may conduct this search via the National Motor Vehicle Title Information System (NMVTIS). This system provides a means for titling bodies to verify the authenticity of paper title information. NMVTIS protects users from fraudulent vehicle acts and prevents individuals from reselling sold vehicles. 

Free Title Lien Search in Alabama

The Alabama Motor Vehicles Division collaborates with approved third-party vendors to offer title lien searches. Some vendors permit users to search for a free title lien with their VIN. However, additional services, like the production of a copy, may attract additional charges.

What is a Judgement Lien in Alabama

An Alabama judgement lien is a claim imposed by a creditor against a debtor's property due to court judgement. When a court rules a money judgement in favor of a creditor, the lien holder becomes authorized to place a lien on the debtor's property.

The judgement creditor may impose judgement liens on the following:

• On the debtor's real property with the appropriate title of ownership;
• On the debtor's personal property, except mobile assets, whether they have ownership title to the assets or not.

All proceeds from the sale of real property belong to the creditor for debt recovery. 

According to § 6-9-1, the judgement creditor who wins the favor of judgement may obtain a writ of execution within 10 years. Judgements are typically issued for specific property and possession of lands bearing relative value as the debt. The judge of the Circuit or District Court where the property is located may issue this writ of execution within 90 days of the money judgement. 

Alabama Judgement Lien Search

An Alabama judgement lien can be performed at the probate, circuit, or district court in the county where the property is located. However, inquirers must verify if the judgment lien affects real or personal property.

Requesters may find copies of judgement liens on real or personal property via the physical address of the court clerk's office. Also, the Alabama Secretary of State's UCC Search portal provides information on judgement liens imposed on personal property in the state.

How to Get a Lien Release in Alabama 

Anyone can get a lien release in Alabama if they fulfill the following requirements:

• The debtor must settle complete or partial debt payments, including penalties, costs, and interests;
• If a fraudulent lien is imposed, the debtor may appeal to the court to release the lien;
• The debtor may also opt out of the lien once the statute of limitation is attained.

Generally, the state mandates lienholders to file a statement of release with the required office or court once the debt is settled. This could be the office of the probate court judge, circuit or district clerk's office, or the Department of Revenue Motor Vehicles division.