What are Liens and Attachments?

Lien

A lien is imposed on property usually as security for payment of a loan and prevents transfer of ownership until the lien is removed.

A lien in favor of a bank or finance company, such as when you need a loan to buy a car, is transmitted directly to the License Bureau (“Misrad Harishui”) computer system. In the case of a lien being registered at the License Bureau, the vehicle owner or power-of -attorney must be present.

If the vehicle is registered under the name of a company or an association, a power-of-attorney signed by a lawyer is required. A request to register a lien must be submitted on the official letterhead of the company imposing the lien. The letterhead must include the company`s address and registration number. The request must also declare that the party imposing the lien guarantees to register the lien with the Registrar of Pledge (at the Ministry of Justice) or with an applicable authorized registrar, and include the official stamp, signature and full name of the party imposing the lien, as well as the vehicle owner`s agreement to registration of the lien.

Removing a Lien

Removal of a lien by a bank or finance company is shown directly on the License Bureau computer system. A request to remove a lien registered in favor of another party must be presented at the License Bureau. The request must be written on the official letterhead of the party that imposed the lien and include a guarantee to remove the lien at the Registrar of Pledge (or the applicable authorized registrar), as well as the official stamp, signature and full name of the one with the encumbrance.

Only the party that imposed the lien can cancel it. When buying a new car, the dealer will take care of the lien if you take any kind of loan or leasing from him.

Attachment

Attachment is usually issued due to debt owed to a court, municipality, labor court, rabbinical court, tax authority, the National Insurance Institute, Bailiff`s Office, and the like. The writ of attachment must state the full name and identity card number or company registration number of the debtor.

Release from Attachment

Once the debt has been settled or the attachment cancelled, the party that requested the attachment is obliged to report the release to the License Bureau. You may find it much easier to issue an attachment than to release one. Only the party that imposed the attachment can cancel it. If he refuses to do so for any reason, then it is only through the courts that you can obtain a release. This is always a lengthy and annoying process.

Sincerely,

Tzvi Szajnbrum, Attorney at Law