Possessory lien

Definition

A claim on somebody's property that lasts only while you hold it.

Why It Matters

It is the opposite of the lien a lender files. A blanket lien is recorded and follows the asset anywhere; this one exists because the property is in your hands and dies the moment you give it back. Whole trades run on it: a tow yard holding a car, a marina holding a boat, an innkeeper holding a guest's baggage, a self-storage operator holding a locker, a mover holding furniture. What a buyer inherits with the business is not just the claims but the notice discipline behind them, since every state that grants the lien also sets the letters, the waiting periods and the advertising a sale needs, and a sale that skips a step can be voided. Read the aged-receivable list as a list of held property.

In numbers: A tow operator holding a car for $1,200 of charges cannot sell it for 35 days in Florida, and must mail notice of the sale 30 days ahead.