What is a real estate lien and how can it affect a dispute?

A real estate lien is a financial claim against a property by an entity or individual who is owed money. This can include taxes, amounts owed for services or goods, money for labor, or fees related to real estate transactions. A lien gives the holder the right to seek compensation through the property or by other means if the debt is not paid. In North Carolina, a real estate lien can be placed against a property when a dispute arises between a homeowner and a third party such as a contractor, who claims to have performed work for the homeowner yet has not been paid. The lien gives the contractor the right to be paid from any proceeds of the sale of the home. A real estate lien also gives the holder the ability to foreclose on the property, meaning that they can seize it in order to be paid what is owed. This places the homeowner in a position of uncertainty over if they will be able to keep their home. To avoid this, the dispute needs to be resolved through either negotiation or through a court of law. Real estate liens can have a huge impact on any real estate dispute in North Carolina. It is important to be aware of them and their implications, and to have a plan to resolve the issue before the situation gets to that point.

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What is a real estate lien and how can it affect a dispute?

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