Lien
A lien is the right to keep possession of property belonging to another until that person repays a debt. It is a type of remedy that can be exercised upon property. The holder of the lien is called the lienor, and the person who owns the property and owes the debt is called the lienee.
The lienor can keep the property until the debt is paid in full but cannot sell it. In a lien, the property had been delivered to the possession of the lienor in another capacity, usually as a seller.
The most common type of lien in Cyprus is the unpaid seller’s lien. This is the right of the unpaid seller of goods to retain the goods the buyer has bought but not paid for in full.
Legislation
- Law of Contract, Cap. 149
- Sale of Goods Act 1994 (10(I)/ 1994)
- Other statutes granting statutory liens
Types of lien in Cyprus
The contract law of Cyprus recognises a general right of lien for:
- Agents
- Bankers
- Factors
- Wharfingers
The Sale of Goods Act gives a right of lien to unpaid sellers in circumstances where the seller has the goods and:
- The buyer has not paid, though the goods were not sold on credit or
- The goods were sold on credit, but the credit has expired, or
- The buyer is declared bankrupt.
Moreover, the maritime lien is the privileged claim over a vessel or other maritime property.
How is a lien discharged?
The lien is discharged when the debt is paid in full, or the lienor agrees to discharge the lien.
Importance
A lien in Cyprus is a legal right or claim against a property because of an unpaid debt. The lien holder or lienor has a legal interest in the property until the debt is repaid. It is necessary to settle a lien before the property can be transferred.
FAQs
- Legislation
- Types of lien in Cyprus
- How is a lien discharged?
- Importance
- FAQs
