Stewart Bulletin

Stewart Title Guaranty Company

P. O. Box 2029 Houston, Texas 77252-2029 (800) 729-1902

CT2007001

Date: June 6, 2007
To: All Issuing Offices in Connecticut
RE:

Connecticut Lien Guide

Dear Associates:

A lien has been described as a form of security interest in real (or personal) property and includes (1) a charge against or an interest in property to secure payment of a debt or performance of an obligation; or (2) a security interest created by agreement; or (3) used to secure a monetary judgment ordered by a court pursuant to a legal or equitable proceeding; or (4) an encumbrance or security interest arising by statute or operation of common law. See Connecticut General Statutes §52-552b (8);Connecticut v. Doehr, 501 U.S. 1 (1991) and Chevy Chase FSB v. Wheeler, 19 Conn. L. Rptr. 18 (1992).

For the most part a lien is a non-possessory form of security, which can be categorized as consensual or non-consensual. Consensual liens (i.e. "Purchaser's Lien; UCC-1 Financing Statement) usually arise out of contractual relationships while non-consensual liens (i.e. -tax liens; judgment liens or mechanic's liens) arise by statute or common law, which typically give a creditor the right to impose a lien by the existence of the relationship of the creditor and debtor. See C.G.S. §52-352b; C.G.S. §47-202; Senior Futures, LLC v. Silvestri, 04-CBAR-0280 (2004) citing Paton v. Robinson, 810 Conn 547, 548 (1909).

Liens are also perfected or unperfected. Perfection is generally accomplished by taking certain steps required by law to give third party creditors notice of lien. This notice establishes a priority right in the encumbered property with respect to the other "notified" third party creditors. See C.G.S. §47-258(d); First Constitution Bank v. Harbor Village Ltd, 230 Conn 807, 828 (1994).

Attached please find a Lien Guide (Exhibit A). While not comprehensive, it provides for twenty (20) of the most commonly found liens on real property titles. It can be a helpful reference tool for attorneys, paralegals and title examiners as well. If you have any questions, please contact this office or visit our Connecticut Stewart Title website at www.stewartct.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF ALL CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AND ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED, OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
References
Bulletins Replaced:
Related Bulletins:
Underwriting Manual:
Exceptions Manual:
Forms:

2007 Connecticut Lien Guide

LIEN DURATION NATURE OF LIEN STATUTORY REFERENCES PLACE OF RECORDING DISCHARGE
           
Federal Tax Lien 10 years + 30 days with additional 10 years if lien notice properly re-filed Lien for any unpaid Federal Tax.

26 USC §6321
26 USC §6323
CGS §49- 32a
26 USC §6325

Town Clerk

Release
Corporate Business Tax Lien

Due until paid.

Lien for tax for the right to do business as a corporation in CT. CGS §12-235
CGS §12-35
Town Clerk Release
Transfer of Controlling Interest Tax Lien

Due until paid.

Lien for tax on sale or transfer of controlling interest in entity owning an interest in real property over $2,000.00. CGS §12-638j
CGS §12-35
Town Clerk Release
Municipal Tax Lien 15 years unless foreclosure action commenced. Lien for unpaid municipal taxes. CGS § 12-173
CGS §12-175
Town Clerk Release
Connecticut State Succession Tax* Due until paid. Lien for unpaid succession tax. CGS §12-366 Town/Probate

Tax Certificate from Probate Court

Alcoholic Beverage Tax Due until paid.

Lien for unpaid tax on sale of alcoholic beverages.

CGS §12-441; CGS §12-435 CGS §12-35

Town Clerk Release
Mechanic's Lien 1 year from perfection, unless lienor records lis pendens and commences foreclosure action. Lien for unpaid materials or services more than $10.00 furnished on lot or bldg. CGS §49-33
CGS §49-39
Town Clerk Release; Bond or Expiration
Lis Pendens 15 years with additional 10 years if lis pendens properly re-filed and notice served. Notice of action intended to affect real property. CGS §52-325 Town Clerk

Termination of the underlying court action; release or expiration of statutory term

Attachment 15 years unless a judgment lien has been filed, then see Judgment Lien below. Prejudgment remedy: A judicial lien to secure a potential judgment.

CGS § 52-285
CGS §52-327

Town Clerk

Release; Bond or Substitute Security

Judgment Lien 20 years from date judgment was rendered unless foreclosure action commenced. Lien for unpaid money judgment or portion thereof.

CGS §52-380a
CGS §52-380d

Town Clerk Release

Contract for Sale of Real Estate-Purchaser's Lien

2 years from perfection unless foreclosure action commenced.

Statutory Lien for deposit/paymentspaid as stated in recorded contract or notice of contract.

CGS §49-9
CGS §49-92a
CGS §49-92c

Town Clerk

Release signed by all of the
purchasers, also "......transfer
of title of the land to the vendee constitutes a release .....of the lien"  

Broker's Lien 1 year from perfection (6 months for Option to Purchase or Lease), unless foreclosure action commenced. Action to recover commission arising out of real estate transaction. CGS §20-325a Town Clerk Release
Mortgage 20 years after date of final payment or 40 years if no final payment date stated. 10-year continuation upon proper filing. CT is a title state although a mortgage deed is described as a "lien" in various statutes. CGS  §49-13a Town Clerk Release
State Financial Assistance Lien Until discharged. Repayment of state financial assistance received. CGS  §17b-79 Town Clerk Release
Civil Action  - Past Due Child Support Lien Until discharged. Lien for unpaid court-ordered child support of at least $500.00. CGS  §52-362d Town Clerk Release
Criminal Action- Bonds 6 years after forfeiture ordered unless AG's Office commences foreclosure action & records lis pendens within that time period. Bail Bond. CGS  §54-66(b) Town Clerk Release
Private Water Company Lien 1 year with additional 14 years by proper filing of continuation. Lien for unpaid water use charges. CGS §49-72 Town Clerk Release
Condominium Lien for Assessments 2 years from date full amount of assessments due if no action to foreclose commenced.

Unpaid assessment.

CGS  §47-258 Town Clerk Release
Condominium Lien for Common Expenses 1 year from perfection, unless foreclosure action commenced. Unpaid common expense. CGS §47-77 Town Clerk Release
UCC-1 - Financing Statement 5 years - can be continued by proper re-filing at least 6 months prior to expiration. Security interest on fixtures and personal property.

CGS § 42a-9-515
CGS §42a-9-513

Town & Sec of State

UCC-3 - Term.  Statement

All content on Virtual Underwriter is subject to the terms shown here.