Delaware Lien: A Complete Guide to Liens in the State

A lien is a legal claim filed by a creditor against a debtor’s property as security for an unpaid debt or obligation. Once it is recorded in the county, a lien gives the creditor the right to enforce payment from the debtor. It also restricts the debtor from selling or transferring the ownership of their property until the lien is satisfied.

What Is a Lien in Delaware?

In Delaware, a lien is a creditor’s legal right to attach a claim to a debtor’s property until the debt is repaid. Liens may be applied to the debtor’s property, which includes land, houses, commercial buildings, vehicles, or business assets. Once it is recorded in the county, liens are considered public record.

Types of Liens in Delaware

The following types of liens are found in Delaware:

1. Property Tax Liens - These are filed when individuals or businesses have unpaid tax liens, especially with the Delaware Division of Revenue. These liens are of high priority, and failure to satisfy the lien may lead to the sale of the property.
2. Mechanic’s Liens - A mechanic’s lien may be filed by contractors, subcontractors, or suppliers who have not been paid for construction, repairs, or property improvements. Delaware has specific statutory requirements for this type of lien.
3. Judgment Liens - This is granted by the court when a creditor wins a lawsuit and records a judgment against a debtor’s property. Judgment liens may be attached to both real and certain personal property.
4. Mortgage Liens - Mortgage liens are placed by lenders when they use the property as collateral. It remains active until the loan is paid in full and the lien is released.
5. FederalTaxLiens- These are filed by the IRS or the Delaware Division of Revenue against individuals or businesses for their unpaid federal or state taxes. The liens may be attached to real estate, vehicles, and other personal assets.
6. Homeowners Association Liens - Homeowners’ associations file these for unpaid dues, delinquent utility bills, or code enforcement penalties.

How to Search for Liens in Delaware

Lien filings typically include the lienholder’s name, debt amount, recording date, and legal property description. Per the Delaware Freedom of Information Act, lien records are public documents and may be accessed in several ways, including:

• County Recorder of Deeds Offices: Delaware has three counties (New Castle, Kent, and Sussex), and each county maintains its own lien and property records. Individuals may search for liens by using the property owner’s name, address, or parcel ID.
• OnlineCountyDatabases: All three counties provide online portals that allow the public to access property and lien records, though some may require registration or fees.
• Delaware Courts Case Search: Individuals may find judgment liens through the Delaware Judiciary branch’s Access CourtConnect Portal.
• Title Companies and Third-Party Services: These services provide comprehensive lien searches, often used in real estate closings.

Lien Records in Major Delaware Cities

Delaware conducts lien searches through county offices rather than city offices. However, here is how records are typically accessed in the state’s largest cities:

• Wilmington (New Castle County): Lien records are maintained by the New Castle County Recorder of Deeds, and online searchesare available.
• Dover (Kent County): The Kent County Recorder of Deeds maintains lien and property records that are accessible to the public online and in person.
• Newark (New Castle County): Searches for liens are conducted through the New Castle County system.
• Middletown (New Castle County): This location is also included in New Castle County’s database.
• Georgetown (Sussex County): Lien records are managed by the Sussex County Recorder of Deeds, with both online and in-person services for the public.

How Long Does a Lien Stay on Property in Delaware?

How long a lien stays on a property in Delaware depends on the type of lien:

• Property Tax Liens: These liens remain active until the taxes are paid or the property is sold at a tax sale.
• Mechanic’s Liens: The lien must be filed by the professional within 120 days from the completion of the work. The liens remain valid for two years unless enforced by a lawsuit.
• Judgment Liens: They are valid for 10 years and may be renewed for an additional period of time if the judgment is unpaid.
• Mortgage Liens: They continue until the debt is fully repaid and the lender files a lien release.
• Tax Liens (IRS): Federal tax liens usually last for 10 years.

How to Remove a Lien in Delaware

In Delaware, it is essential to remove a lien on a property after the conditions have been satisfied. It is usually evidence that a debtor has resolved their debt or paid their taxes. Common ways to remove liens include:

• Paying the Debt in Full: Upon complete payment of debts, the lienholder must file a lien release with the county recorder of deeds.
• Negotiating a Settlement: Creditors may accept partial payments or settlement agreements from their debtors, followed by recording a release.
• CourtPetition: If a lien is invalid or improperly filed, property owners may seek its removal through the courts.
• Recording a Release or Satisfaction: A debtor should ensure the lienholder (creditor) records an official release document with the county to clear property title.

Liens in Delaware are an important legal tool that protects creditors while requiring debtors to fulfill their financial obligations. Since Delaware has a county-based recording system, searches must be conducted through the proper county office. To avoid errors or delays, it is preferable to consult an attorney, title company, or the local recorder of deeds.