What is a Lien in Hawaii?
In Hawaii, creditors and credit institutions can recover loans from debtors by filing a lien to obtain the debtor's property. A lien guarantees that borrowed funds are secured by the seizure or sale of one or more of the debtor's assets following defaults in payment. Different types of liens exist, and they are typically a result of debt. Ways by which people typically incur debt include purchases, judgments, contracts, lawsuits, and loans. These debts cause creditors to place liens on debtors' real and personal property. Some examples of these liens include judgment, mortgages, mechanics, and tax liens.
Hawaii liens are broadly categorized into voluntary and involuntary liens. Voluntary liens are created through contracts or agreements between the lender and the borrower. Involuntary liens do not require the borrower or debtor's consent as they are typically statutory. Liens can also be general or specific. General liens attach to all of a debtor's property, while specific liens attach to a particular property. Liens can have more than one characteristic in that they can be both voluntary and specific or general and involuntary. A judgment lien is an example of an involuntary and general lien; it attaches to a debtor's property by the operation of law, and it applies to all of a debtor's non-exempt property. While a lien guarantees the creditors rights over a property, liens cannot be enforced unless Hawaii courts have issued a judicial order.
Are Liens Public in Hawaii
In Hawaii, liens may be a public record depending on the type of lien and the filing process. According to the provisions of the Hawaii Revised Statutes, all mortgages, deeds of trust, and other liens filed in the Bureau of Conveyances are public records. Hence, members of the can access or view these records upon request.
However, there are liens on personal property that are deemed private and selected liens that do not become public records until after they have been enforced by a judge. Ultimately, public liens will remain so until they have been discharged or released, while private liens will remain confidential unless the property owner chooses to make them public.
Types of Lien in Hawaii
There are two main types of liens in Hawaii:
- Voluntary or consensual lien: A voluntary lien happens when a person willingly provides a collateral interest in the form of real or personal assets to ensure the redemption of a loan. An excellent example of a voluntary lien in Hawaii is a resident who takes a loan to buy a car and offers the borrower a significant stake in the vehicle.
- Involuntary or non-consensual lien: Involuntary liens can be categorized into contractual liens and judgment liens. Contractual liens occur when a creditor uses state or federal statutes to obtain a lien on a debtor's estate. Unpaid contractors may get contractual liens in the form of a mechanics' lien. Another type of contractual lien is tax lien imposed by the state or federal government on tax defaulters in Hawaii. A judgment lien in Hawaii involves a court judgment that allows a creditor to claim a debtor's asset. Any civil case brought before a judge can lead to a judgment lien.
How Do I Check for Liens in Hawaii?
The best way to check for liens in Hawaii is to contact or visit the government agencies. Liens are public record and are therefore accessible to members of the public by law. Persons interested in checking for Tax liens may visit the Department of Taxation's office in person or contact the department by telephone to find the required information.
Interested parties may find real property and mechanics liens at the Bureau of Conveyances. This bureau is a central repository for records, including liens, in the state, and it offers a remote search website where interested parties may check for liens. Persons interested in checking for judgment liens may visit or contact the Circuit Court Clerk in the county where the lien was recorded or where the liened property exists.
Free Lien Search in Hawaii
Persons interested in searching for liens in Hawaii at no cost may contact the government agencies responsible for maintaining the records of interest. To search tax liens at no cost, requesting parties may contact the Department of Taxation or the state's Internal Revenue Service office. Interested parties may also contact the Clerk of the Circuit Court in the county where the lender filed the lien or where the liened property exists.
Another way to search liens for free in Hawaii is through the Bureau of Conveyances; interested parties may search for liens in person at the bureau's public reference room or send records requests to the bureau at dlnr.bc.faq@hawaii.gov. Requesting parties may also search the bureau's website for documents filed between 1992 and 60 days before the date of request. To use the online search website, requesting parties must create user accounts. Such parties may then search by document number, tax map, lienor's name, or lienee's name. Users may search at no cost; however, interested parties must pay $1 for each downloaded page.
What is a Property Lien in Hawaii?
A Hawaii property lien is a legitimate claim on a debtor's property used as collateral to cover a debt. Creditors use property liens as a final step to ensure that borrowers pay for loans or debts. Property liens may be used to recover properties like vehicles, ships, or even homes if the homeowner has fallen behind on mortgage payments. Hawaii's property liens include mechanics' liens, tax liens, mortgage liens, and judgment liens. According to Hawaii Revised Statutes § 507-43, any party claiming a lien on a property must file an "Application of a Lien" and "Notice of Lien" at the circuit court where the property is located.
How Do You Know if a Property Has a Lien in Hawaii?
Property owners who enter voluntary lien agreements such as mortgages know a lien attached to their property. Even property owners who have involuntary liens against their property typically know of the existence of any liens, since the creditor or lienor would have sent notice of the lien.
Involuntary liens may go under a property owner's radar since different agencies regulate the different types of liens. If a property owner does not know whether a lien is attached to their property or the requesting party is not the property owner, they may contact the appropriate government agencies;This includes the Department of Taxation or Internal Revenue Service, the Clerk of Circuit Court in the county where the property is, or the Bureau of Conveyances, which is the state's record repository.
Interested parties may also work with title agents to determine if a property has a lien.
Property Lien Search by Address in Hawaii
In Hawaii, a property lien search by address can be conducted by searching the public records at the Bureau of Conveyances or the County of Hawaii's Real Property Tax Assessment Division database. The search will reveal any liens, mortgages, or judgments that have been filed against the property. Users must register for a user account to use the Document Search & Ordering system to do a property lien search with the bureau of conveyances. After logging in, users can search the database for free; they only pay when they buy a document using a credit card or a subscription. Lien searches by property address on the real property tax assessment division database can be performed by using either the house address or the street name. Any liens put on the property will be revealed under the "historical search information section".
Free Property Lien Search by Address
The general public can perform a free property lien search by address utilizing the or any of the county recorder offices in Hawaii's online public records search portals. By going to the county recorder's official website, information searchers can locate the property records search portal. These search engines frequently offer various details about liens on real estate, including lien extensions, notices of liens, releases of liens, and tax liens.
What is a Tax Lien in Hawaii?
Hawaii tax liens are involuntary liens levied on a person's property for failure to pay taxes to the State of Hawaii. A tax lien appears on a person's credit report, hurting their credit history. Failure to pay taxes like individual income tax, corporate tax, general excise tax, fuel tax, rental motor vehicle tax, and others may result in a tax lien being imposed by the Hawaii Department of Taxation. The agency is in charge of reclaiming taxes by auction or attempted acquisition of confiscated assets.
A tax lien imposed by the state government is only a claim on the tax defaulter's property; it does not mean that the property will be sold off immediately. Generally, tax liens are removed from the property if the debtor pays the government what is owed or offers a satisfactory compensation scheme. However, if the person declines to pay tax deficits after a certain period, the government may seize the debtor's asset and sell it. The Internal Revenue Service may also impose a tax lien if a taxpayer does not pay federal income tax when it is due.
Tax Lien Lookup in Hawaii
Interested persons can perform a tax lien look-up in Hawaii by visiting any county real property assessment website. For example, the Maui real property assessment website allows persons to perform a Tax lien lookup using either the address, the owner's name, or the parcel number of the property. There are also similar databases for Hawaii county and Honolulu county. A tax lien look-up in Hawaii can also be performed by submitting a public records request to the state department of Taxation. Requests can be made in writing by email at Tax.PIO@hawaii.gov or by mail to
Department of Taxation,
Director’s Office, 830
Punchbowl Street, Rm 221,
Honolulu HI 96813.
What is a Mortgage Lien in Hawaii?
Mortgage liens ensue when residents in Hawaii purchase properties with a loan. According to Hawaii Revised Statutes § 506-1, this lien is consensual as the mortgagor agrees to a mortgage lien to obtain a loan. Mortgage liens differ from mechanics' liens, tax liens, judgment liens, or other property liens because it is the first lien on a property. Unlike property liens, tax liens, or judgment liens imposed by state or federal laws, mortgage liens exist at the homeowner's discretion. As such, mortgage liens are usually more straightforward than other liens.
What is a Mechanics Lien in Hawaii?
In Hawaii, a mechanics' lien ensures payment for architects, contractors, and building agencies who build or restore buildings. This type of lien also includes material distributors, subcontractors, and structural maintenance companies. As stated under Hawaii Revised Statutes § 507-42, a construction worker may assert a lien on a property if the owner fails to meet a contract agreement. Mechanics' liens can be filed by unpaid workers, suppliers, or contractors with the Hawaii Circuit Courts. A property lien varies from a mechanics' lien because it provides for the repossession of properties (vehicles or homes) if the homeowner is behind on loan payments. On the other hand, a mechanics' lien deals with unpaid labor and capital costs concerning building projects.
What is a UCC Lien?
Lenders in Hawaii file UCC financing statements (UCC-1 filing) against persons who receive loans. The Uniform Commercial Code (UCC) regulates how businesses operate in the United States. A UCC lien or filing gives creditors and credit institutions the go-ahead to seize, impound, or trade-off the debtor's property if they fail to pay back the loan at an agreed time. Building contractors and supply vendors adopt UCC liens to ensure payment when offering credit to customers.
A UCC filing offers insurance for goods or materials obtained, and it can also extend to contractors based on the type of work done. The UCC filing is needed if the bulk of the supplier's contract is to deliver supplies in a limited quantity or for a small sum. However, where the agreement is for maintenance and other supplies, filing a mechanics' lien is the best option. According to the Hawaii Uniform Commercial Code (UCC) Recording System, more than 50,000 UCC-1 filings have been completed in the state. Individuals can file UCC-1 online by using the platform created by the Bureau of Conveyances.
How to Conduct a UCC Lien Search
Hawaii's State of Hawaii Bureau of Conveyances offers online access to UCC lien searches. Using the search bar on the bureau's website, scroll down and choose "document ordering" to do a Ucc search. Users must first register on the website for an account before they may submit a search request. Each UCC search request is subject to a cost of $25 plus $5 for each discovered creditor. Requests for copies are subject to an extra price of $1 per page. In Hawaii, a UCC search will display the document type, filing date, and names of the debtor and creditor.
What is a Judgment Lien?
In Hawaii, a judgment lien allows a creditor to obtain a certain sum of money from the auction of a debtor's property after a court judgment. Judgment liens automatically exist on the debtor's assets after the court's ruling. Generally, Hawaii judgment liens remain valid on the debtor's asset for up to 10 years, even when there is a change in proprietary rights. In Hawaii, judgment liens are recorded on real estate like land, condominium, and homes.
What is a Federal Tax Lien
A federal tax lien is a formal claim that the government can make on a taxpayer's assets for unpaid taxes. When a taxpayer fails or refuses to pay the government's taxes, a lien is created.
The Internal Revenue Code (IRC) grants the government the ability to establish a lien on any real or personal property owned by a person who fails to pay any IRC-imposed taxes under 26 U.S.C. 6321.
What is a Lien Title?
A lien title is a record that certifies the existence of a lien against a specific piece of real estate. It states that the owner of the property must fulfill a debt or obligation before they may sell the asset or give it to someone else in exchange for money. The government or a lender could issue it. A lien title can be put on many different types of property, including real estate, cars, and personal belongings. If the debt is not paid, the creditor may be allowed to take and sell the property in order to recover the money owed.
Where and How to Do a Title Search in Hawaii
Interested persons can conduct a title search on any property in the state by searching through the Hawaii Bureau of conveyance document search website. The department has indexed property records dating back to 1976 so that they can be found by various search criteria such as document type, recording date, and property location. The requestor can also search by the name of the property owner. In Hawaii, title searches are frequently carried out by real estate lawyers or title businesses. To ensure the title search is done correctly, the BOC may suggest hiring an attorney or title company.
Voluntary Lien vs. Involuntary Lien in Hawaii?
A voluntary lien grants a creditor access to any property used as collateral to secure a loan. The creditor uses this type of lien to repay the loan that was borrowed if the debtor cannot pay. A voluntary lien is consensual since the owner willingly gives up the property as collateral, thereby giving a lender the legal claim to the property. A mortgage lien is a good example of a voluntary lien. In contrast, an involuntary lien or non-consensual lien is often imposed on a debtor's property by law or court judgments. Examples of involuntary liens are tax liens and judgment liens.
How Creditors Collect Payment Through a Lien
When a creditor files a lien against a property, the lien grants the creditor legal right to seize, repossess, foreclose, or sell the property to recover payment. In Hawaii, this process begins with the lienor obtaining a writ of execution from the court if the lien is a judgment lien. Non-exempt property with attached liens may be sold to the highest bidder in a Sheriff's sale. After the sheriff delivers a conveyance or certificate of purchase, proceeds from the sale are paid to the creditor to satisfy the outstanding debt.
How Do I Get a Lien Removed in Hawaii?
To remove a lien in Hawaii, the lienee must satisfy or pay off the lien. The lienee must contact the lienor to make payment in full or negotiate a reduced payment. The lienor must then sign a release document indicating that the lienee has satisfied the lien. The release document must be recorded with the Bureau of Conveyances to make the release official. Interested parties may confirm whether a release document has been filed by visiting the bureau's document search website and searching the document number or the case party names.
Disputing or challenging a lien is another way to get a lien removed in Hawaii. If a lienee can establish that a lien is invalid, the court may discharge the lien.
How Long Does a Lien Stay on Your Property in Hawaii?
The duration that a lien stays on a property in Hawaii depends on the type of lien. According to HRS §507-43, a mechanics lien expires three (3) months after it is recorded. On the other hand, judgment liens remain valid as long as the underlying judgments. Typically, judgments are valid for up to ten (10) years in Hawaii, except the court grants an extension. A creditor must seek an extension before the expiration of ten (10) years from the original judgment. According to state laws, all judgments are presumed to be discharged and paid after ten (10) years, and the court may not extend a judgment beyond 20 years from the original judgment date.
How to Avoid a Lien in Hawaii
It is possible to avoid a lien in a bankruptcy process. Lien avoidance allows debtors to maintain ownership of their assets by applying bankruptcy exemptions to their property.
To avoid a lien in Hawaii, interested parties must file a Motion to Avoid Liens in court. The property of interest must have equity and qualify under bankruptcy exemption laws. When a person files a motion for lien avoidance in Hawaii, the court determines the value of property or lien to determine if the property value is more than the lien.
