Liens: general and specific liens, priority, and subordination

Classify the lien

A lien is a claim against property securing payment of a debt or obligation. It does not itself transfer ownership or possession. A specific lien burdens identified property: a mortgage on the pledged parcel, a real property tax lien on the taxed parcel, or a mechanic's lien on improved property. A general lien can reach multiple assets or parcels within its legal scope. A properly docketed judgment lien is a familiar example affecting the debtor's real property in the applicable jurisdiction; general does not mean every asset everywhere.

Voluntary versus involuntary describes how the lien arises. A mortgage is voluntary and specific. Tax and judgment liens arise by law rather than an agreement to pledge security. A judgment lien can be involuntary and general.

Rank the claims

Priority determines entitlement to payment from the property. Earlier recording or filing is a starting point, subject to statutory preferences and valid subordination. Real property tax liens generally outrank ordinary mortgage liens. For an actual transaction, examine controlling law and recorded documents rather than assuming dates settle every contest.

New York Lien Law § 13 gives qualifying improvement liens priority over certain claims not recorded, docketed, or filed when the lien notice is filed. Competing mechanics' lienors do not gain priority merely by filing earlier; the law provides parity, with exceptions including a preference for daily or weekly wage laborers.

Change rank without cancelling debt

Subordination moves a claim behind another claim. It neither forgives the debt nor releases the lien.

New York Lien Law § 29 permits an individual mechanic's lienor to subordinate its lien to a later mortgage by a duly acknowledged or proved certificate filed where the lien notice is filed. Section 33 excludes daily or weekly wage laborers' liens from that section's operation.

Distinguish notice from security

A notice of pendency, or lis pendens, gives constructive notice of qualifying litigation affecting real property under New York CPLR § 6501. A person recording a conveyance or encumbrance after the notice is filed is bound by later proceedings as a party would be. The notice flags the lawsuit; it is not itself a mortgage or money judgment.