Understanding The Landlord's Lien

In the world of commercial leases, a landlord's lien can be a critical tool that provides an additional layer of security for the landlord against tenant defaults. But what exactly does this mean for the landlord, the tenant and the tenant's lenders? Let's break it down.

What Is a Landlord's Lien?

A landlord's lien is a legal right granted to the landlord to secure payment for unpaid rent or other lease obligations. These lien rights may encompass the tenant's personal property, fixtures, equipment, accounts, licenses and more. This lien can arise in different ways – either by statute (a lien imposed automatically by state law), by contract (based on terms agreed to in the lease) or both.