What is a Lien in Wyoming?
In Wyoming, a lien is a lawful claim on a person's real or personal property to guarantee the payment of a debt or secure the performance of a duty. A lien can be placed voluntarily (consensual) or involuntarily (non-consensual) on a property or asset. Usually, this claim is filed by a creditor (or lien claimant) against a debtor (or owner). It is a public notice that one person owes money or a contractual obligation to another. When placed, the debtor's properties or assets become collateral to fulfill a debt or duty, and if unfulfilled, can lead to the seizure of collateral by the claimant. Other than creditors, liens can also be established by legal judgment, a tax agency, or the government.
In Wyoming, the Revised Wyoming Statutory Lien Act gives state residents the legal right to enforce or claim a lien. Under this law, several kinds of liens can be filed to satisfy debts, including property, mortgage, motor vehicle, and mechanics liens. However, every lien can be categorized as either general or specific. A lien is "general" when it gives authority to claim any property of the debtor in the lienholder's possession until debts are cleared, and it is "specific" when placed against a specific property until settlement of debt obligations. A specific lien is also called a particular lien.
Lien claims are filed with the county clerk's office in the county where the property is located or with the Secretary of State. The office also maintains these recordings and related Wyoming court records for dissemination to interested members of the public. For example, non-titled vehicles and agricultural products are filed with the Secretary of State, while claims on real/personal property, state/federal tax, and titled vehicles are filed with the county clerk.
Are Liens Public in Wyoming
Yes, liens are public in Wyoming. According to the state public records law, all liens, including property tax and mechanic's liens, must be recorded with the county clerk in the county where the property is located. The records are open to public inspection and copies can be obtained from various custodians across all judicial districts in the state.
Types of Lien in Wyoming
There are different types of liens in Wyoming, and these are also subject to different legal issuances or holders. The most typical types of liens are tax, real estate, mechanic and, judgment liens.
The issuance of the liens can be voluntary or involuntary.
A voluntary lien is a legal right placed on the borrower's general or specific property based on the agreement established with the lender. An example of such a lien is a bank lien.
However, an involuntary or statutory lien is issued by a legal body over the borrower's property without their consent.
A common type of Wyoming lien is a mechanics lien which gives legal power to contractors, subcontractors, and suppliers who have provided a service without being paid. The contractor, in this instance, is legally entitled to acquire the property that they have built, repaired, or provided.
How Do I Check for Liens in Wyoming?
Since liens are available to the public, requestors can easily access them by visiting the proper government departments in the State or County. And one of such departments is the clerk's offices which file lien records like personal property, real property, and state and federal tax.
With properties and purchases, it can be a bit tricky, and this is why many choose to employ experts to help cover any gaps in the transaction. For example, it is better to employ the expertise of a real estate lawyer to look critically and legally into the purchase of a property to rule out any legal loophole like bonds and liens.
Free Lien Search in Wyoming
It is pretty easy and free to search for liens in Wyoming. And while It is preferable to go to the offices with these records to get the full detail of all the records needed, a quick Google Search will provide different websites that will give the requestor access to these lien records, even though not entirely.
The website might ask for details such as first name, last name, and where to search. After gaining access, requestors will be able to retrieve information such as:
- The name and address of the lienee
- The lienholder's name and address
- The type of lien
- The document or file number
- Recording/filing date
- Status of the lien (active, released, or expired)
- The lien's lapse or expiry date
- Document images (e.g., lien notices, abstracts of judgments, the release of lien)
What is a Property Lien in Wyoming?
Wyoming's property liens statutes are outlined under Wyo. Stat. Ann. § 29-2-101 et seq. According to these laws, a property lien is a claim on real or personal property to ensure repayment of a loan or compliance with a contract's terms. With this lien, a creditor or financial institution can repossess, sell, or seize a debtor's property if the debtor cannot make payment when it is due.
Various types of property liens can be placed on a debtor's property, some with the owner's consent or without. Voluntary liens can result from home or auto loans. An example is a mortgage lien. In contrast, involuntary liens may be placed on a property because of child support, tax, and home construction payments defaults. Examples include tax liens and judgment liens.
In most cases, debtors can clear property liens or satisfy all obligations associated with the lien by full payment or negotiation with creditors. However, when a debtor believes a lien is false or frivolous (as explained by Wyo. Stat. Ann. § 29-1-601), the debtor can contest the claim in court. In some cases, the debtor can file for bankruptcy to offset liens. Before proceeding with a petition in court, it is advisable to seek legal advice about a situation to meet statutory requirements and avoid lengthy legal proceedings and considerable fees/costs.
It is important for anyone buying a titled property to ensure that any lien on the property has been released or cleared, as these claims usually take precedence over a buyer's rights.
How Do You Know if a Property Has a Lien in Wyoming?
Properties liened in Wyoming voluntarily will be known by both parties involved and are therefore not hard to identify.
But for properties liened involuntarily, the lienee or debtor is usually informed by the legal body backing the contractor or any other person or company that is owed.
In Wyoming, even before the legal agency files a lien, two preceding steps are done, or the whole process becomes a liability. In the first step, the debtor is given prior notice, and in the second, the intent of filing the lien is made known to the property owner.
However, when an outsider or third party is looking to purchase a property, it's advised that they make prior investigation about that property, ensuring that it is not liened or facing any legal case.
Property Lien Search by Address in Wyoming
Lien searches are primarily done by searching through a county clerk's office or reaching out to the office of the Secretary of State. However, a property lien search by address may not offer the repository sufficient information to facilitate the search. Most lien searches will require the inquirier to provide the name of the property owner as well as information regarding the document of interest.
What is a Tax Lien in Wyoming?
A delinquent taxpayer can be subject to a tax lien in Wyoming. A tax lien is a type of involuntary lien placed on a property to ensure the payment of tax debts. Usually, the federal, state or local government entity attaches this lien to a debtor's asset(s) to collect past-due taxes, and as a last resort after expending other collection efforts. Defaulting parties are liable to have their properties sold or seized by the government. A tax lien can be charged to a debtor's current and future assets, including personal properties, real estate, and financial assets (income, bank accounts, etc.). Typically, overdue taxes must be paid before mortgages.
Tax Lien Lookup in Wyoming
Interested persons may look up tax liens in Wyoming by contacting the County Clerk of Court office in the judicial district where the property is situated. The Wyoming Department of Revenue also offers resources related to tax liens that may be useful for obtain tax lien lookup information for various Wyoming counties.
What is a Mortgage Lien in Wyoming?
In Wyoming, a mortgage lien is a type of property lien placed on a person's home upon receipt of a home loan. The owner's home or property becomes collateral. Suppose the owner fails to meet requirements within a specific time frame, such as monthly installments, property insurance, etc. Then, the creditor is authorized to foreclose or repossess the borrower's home to settle debt obligations.
What is a Mechanics Lien in Wyoming?
A mechanics' lien is attached to a person's real property upon non-payment for construction, labor, or home improvement services. Per Wyo. Stat. Ann. § 29-2-101, any contractor, subcontractor, or materialman who performs and receives no payment for such services can establish a lien on the owner's property to force payment. Typically, this lien is enforceable when the owner is contractually obligated to pay for the service(s). By recording this lien with the county clerk, it becomes a matter of public record. It also serves to notify prospective property buyers, investors, or creditors of a claim that may surpass theirs. Thus, preventing the sale or mortgage of the property until all debts are settled.
In Wyoming, lien claimants must adhere to the relevant statutes to obtain relief for unpaid services and retain their lien rights. For instance, claimants must submit a Lien Statement within statutory limits to successfully record a mechanics' liens. However, lien claimants must forward a Preliminary Notice (Wyo. Stat. Ann. § 29-2-112) to the debtor prior to filing this claim. The purpose of this written notice is to make the owner aware of a possible lien filing if the claimant is not paid. Failure to send this notice prevents the worker or service provider from declaring a lien on the debtor's asset. Furthermore, at least twenty days before filing a claim, the claimant must send a Notice of Intent, per the state's format, to the owner or owner's agent (Wyo. Stat. Ann. § 29-2-107). The Notice of Intent form can be procured from the county clerk's office.
The lien statement must be filed 150 days after the final day of work or service. This time limit applies only to contractors. The limit is 120 days for every other party. The filing venue is the county clerk's office in the county where the project took place or the property is located. Per Wyo. Stat. Ann. § 29-2-312, a lien statement must contain the following information:
- The lien claimant's name and address
- The amount claimed or owed
- The record owner's name and address
- A list of work done or materials provided
- The name of the individual who is contractually obligated to pay off the debt associated with the lien
- The date when services were last provided or the substantial completion of the project
- The liened property's legal description
- A copy or a summary of the claimant's contract alongside a statement detailing where a copy of the written contract can be found
Within thirty days of filing this statement, lienholders must send a filing notice to the property's record owner. This notice informs the owner that a lien has been filed to recover the amounts owed. After filing a lien statement, lien claimants have 180 days to begin legal action in court to enforce a lien (Wyo. Stat. Ann. § 29-2-109).
However, Wyoming's mechanics' liens statutes cover only privately-owned properties.
What is a UCC Lien?
A Uniform Commercial Code (UCC) lien refers to any security interest established under the Uniform Commercial Code. The UCC regulates commercial transactions or agreements in Wyoming, as well as in the other U.S. States. Wyoming's Uniform Commercial Code is codified as Title 34.1 of the Wyoming Statutes Annotated.
The UCC lien can be asserted over a borrower's assets until such a person repays money owed to a lender. This lien can be placed on agricultural products, household items, motor vehicles, etc. In the state, the Secretary of State's office handles these claims per its policies and rules. Filings can be done with the Online UCC System or paper forms submitted to the Secretary of State's office. More information on the UCC filings can be found on the agency's Forms and Publications page.
What is a Judgment Lien?
A Wyoming judgment lien occurs because of a civil lawsuit. When a party (plaintiff or defendant) loses a civil claim initiated to obtain monetary compensation, the court issues a judgment awarding damages to the other party. This judgment not only orders the unsuccessful litigant to fulfill all imposed financial obligations but can also operate as a lien against the litigant's real estate or personal property (Wyo. Stat. Ann. § 1-17-301). However, for a judgment to be enforceable as a lien against an accused's estate or property, it must be recorded with the county clerk. In Wyoming, a judgment lien is valid for five years from the date it was passed (Wyo. Stat. Ann. § 1-17-307).
What is a Federal Tax Lien?
A federal tax lien is a legal claim the Internal Revenue Service (IRS) makes against a debtor or tax defaulter's property. The lien gives the IRS a legal right to their property, including real estate, personal property, and financial assets, and it also gives the IRS the right to any future income or assets acquired during the period that the lien is in effect. Federal tax liens are established after proper notification has been sent to the defaulter/debtor by certified mail and remain in place until the owed taxes are paid in full or until certain conditions are met for release. In addition, a Notice of Federal Tax Lien will be filed with any local recording offices where it will become a matter of public record.
Voluntary Lien vs. Involuntary Lien in Wyoming?
The key distinction between a voluntary and involuntary lien in Wyoming is the debtor's agreement. When a person intentionally agrees to have a lien placed against an owned property, it is voluntary. This is typically seen in a mortgage lien. When this action is taken without the debtor's permission, it is an involuntary lien.
How Creditors Collect Payment Through a Lien in Wyoming
As long as there is legal backing to a creditor's claim, collecting payment through a lien in Wyoming is lawful and follows whatever due process is necessary. The creditor can choose to collect what is owed from the debtor's credit account, income, or personal property.
However, the creditor can not strip the debtor entirely to the point of preventing them from sustaining through basic needs like food, clothing, and shelter.
How Do I Get a Lien Removed in Wyoming?
The simple way will be to pay back the debt owed. Nevertheless, requestors must be informed of their rights and get fully acquainted with every lien regulation if they need to challenge the obligation in court.
Alternatively, employing an industry expert can help generate a more fruitful outcome. However, once the lien is paid, the county clerk is charged with releasing the lien using the following documents provided by the debtor:
- The Wyoming certificate of title
- A letter from the lender/creditor or a lien release statement
- And no charges for releasing if the lien was filed before 1992.
How Long Does a Lien Stay on Your Property in Wyoming?
The length of time a lien stays on property in Wyoming varies depending on the type of lien issued. For houses in Wyoming, the lien is usually involuntary, and the agency of the lien will stay as long as the document demands.
