What is the effective date of a lien?

The effective date of a lien is determined by the day it is recorded in public records. This date is crucial because it establishes the priority of the lien against other claims. When a lien is recorded, it becomes a matter of public record, which means it can be discovered by other potential creditors or interested parties. This recording creates a legal claim against the property and provides notice to others about the lender's interest in the property.

By recording the lien, the lienholder secures their right to payment and can enforce their claim if necessary. The date of recording is what gives the lien its legal standing and is essential for determining the priority of collection in the event of a sale or foreclosure. Thus, the date a lien is recorded in public records is the key factor that influences its effectiveness and enforceability.