Arkansas Lien: A Complete Guide to Liens in the State

A lien is a security interest placed on property due to an unpaid debt or other obligation. While the lien remains in effect, the creditor holds enforceable rights over the property and may restrict the owner from transferring or selling it.

What Is a Lien in Arkansas?

The concept of a lien is governed by the Arkansas Code. This law provides different statutes for various types of liens, including those that apply to both personal and real property. By becoming part of a public record, a filed lien notifies prospective buyers and lenders of any existing financial obligations attached to a property.

Furthermore, liens can create serious obstacles for property owners who wish to sell or refinance. At the same time, they serve as a useful tool for lienholders to secure repayment of debts. For prospective buyers, conducting a lien search before purchasing property can prevent unexpected financial obligations

Types of Liens in Arkansas

The most common types of liens filed in Arkansas include:

1. Tax Liens (Arkansas Code § 26-34-101)Unlike many other liens, tax liens in Arkansas are automatic. They apply to both real and personal property and are created by the state and local governments. Moreover, taxes on these assets are due on the first Monday in January each year. The lien remains in place until the taxes are fully paid.
2. Mechanic’s or Materialman’s Liens (Arkansas Code § 18-44-101 et seq.)These types of liens are used by suppliers and subcontractors who are not compensated for their work as a way to secure payment from the debtor. If filed in the proper way, they may allow the claimant to pursue legal remedies or force a sale of the property to satisfy the debt.
3. Judgment Liens (Arkansas Code § 16-65-117)

   These are legal claims placed on debtor’s real property after a court issues a money judgment. Once recorded, the creditor has the right to collect on the debt which may include pursuing a sale of the property through legal actions.

4. Mortgage Liens: (Arkansas Code § 18-40-101- § 18-40-117)

   Mortgage liens arise when a lender holds a legal claim on a property to secure the mortgage debt. If the borrower defaults, the lender can take and sell the property to recover the loan.

5. Child Support Liens (Arkansas Code § 9-14-231)

   These are legal claims placed on a noncustodial parent’s real or personal property to secure overdue child support payment.

How to Search for Liens in Arkansas

In Arkansas, the public has the right to access and view lien records, which are available through these channels:

• Search ARCourts: The Arkansas Judiciary Case Search portal contains online court case information, including judgment liens.
• Online County Databases: Since lien records are usually maintained at the county level. Some counties offer online search portals for finding property and lien records.
• Title Companies and Third-Party Search Tools: Individuals can also use third-party websites to find detailed lien records from different counties across Arkansas.
• County Circuit Clerk or Recorder’s Office: By visiting the Circuit Clerk or Recorder’s Office, interested parties may search for lien records by name, parcel number, and property address.

A lien record comprises the lienholder’s name, type of lien, recording date, and debt amount. Nevertheless, it is important for property owners to verify this information with the county office.

Lien Records in Major Arkansas Cities

Locating lien records in Arkansas may involve slightly different procedures in each county:

• Little Rock (Pulaski County): In the Pulaski County Circuit Clerk’s Office, the Real Estate Department is responsible for maintaining real estate-related documents, including lien records.
• Fayetteville (Washington County): Through the online land record search, interested parties may find lien records by name, instrument type, and recording date.
• Fort Smith (Sebastian County): To search for lien records in Sebastian County, anyone can use the ARCourts.data website.
• Springdale (Washington and Benton Counties): Depending on where the property is located, owners and buyers can either check the Washington Circuit Clerk’s Record and Index portal or visit the Benton County Recorder’s Office.
• Jonesboro (Craighead County): The Craighead County government website offers an online portal for searching public records, including lien records.

How Long Does a Lien Stay on Property in Arkansas?

Lien validity in Arkansas depends on the type of lien filed:

• Property Tax Lien: This type of lien does not expire until the property is sold or the back taxes are paid.
• Mechanic’s Lien: It is valid for 15 months from the date it is filed.
• Judgment Lien: From the date the judgment is entered, a judgment lien is valid for 10 years.
• Mortgage Lien: A mortgage lien lasts until the mortgage is fully satisfied and the lender records a release.
• Tax Liens (IRS/State): Federal tax liens are valid for 10 years unless the IRS renews them, while state tax laws in Arkansas follow the collection time limits set out under Arkansas law.

Debtors should acquire proper documentation after paying off a debt, as liens that are not officially released can appear in public records.

How to Remove a Lien in Arkansas

In Arkansas, common methods for removing a lien include:

1. Paying the Debt: A lienholder is expected to file a lien release with the county recorder once the debt is paid in full.
2. Negotiating a Settlement: Creditors may agree to settlement plans or partial payment before filing a lien release.
3. Court Petition: Property owners can seek removal through court action if a lien is fraudulent or invalid.
4. Recording a Release or Satisfaction: After a debt is satisfied, it is important to record a lien release with the county office to clear the property title.

In Arkansas, liens play a crucial role in property law by helping to ensure that creditors are paid and property owners fulfill their obligations. Understanding how liens work also protects buyers and property owners during real estate transactions.

Because liens in Arkansas are subject to strict timelines, it is important for both lienholders and debtors to consult a title company, a lawyer, or the relevant county office. By resolving liens in the proper way, property owners can maintain a clear title and avoid complications in real estate dealings.