Every person, having an interest in property subject to a lien, has a right to redeem it from the lien, at any time after the claim is due, and before his right of redemption is foreclosed, and, by such redemption, becomes subrogated to all the benefits of the lien, as against all owners of other interests in the property, except in so far as he was bound to make such redemption for their benefit.
Liens in GeneralRedemption From Lien
Section § 2903
If you have an interest in a property that has a lien on it, you can pay off the lien after the claim is due and before you lose the right to do so. By paying it off, you take over the lien rights, except where you were required to redeem it for the benefit of others with interest in the property.
property lien right to redeem subrogation
Section § 2904
If you have a lien that's lower in priority compared to someone else's on the same property, you have two rights: first, you can pay off the higher lien to reclaim the property, just like the owner could. Second, if it's necessary for protecting your interest, you can step into the shoes of the higher lienholder and enjoy their rights, but only after you've paid off what they are owed.
One who has a lien inferior to another, upon the same property, has a right:
1. To redeem the property in the same manner as its owner might, from the superior lien; and,
2. To be subrogated to all the benefits of the superior lien, when necessary for the protection of his interests, upon satisfying the claim secured thereby.
inferior lien superior lien property redemption
Section § 2905
To free yourself from a lien, you need to do what the lien was meant to secure, like finishing a job or paying back a loan. You also need to pay, or at least offer to pay, any damages caused by delays to the person who holds the lien.
Redemption from a lien is made by performing, or offering to perform, the act for the performance of which it is a security, and paying, or offering to pay, the damages, if any, to which the holder of the lien is entitled for delay.
redemption from a lien perform act offer to perform
Section § 2906
If a debtor gives a secured party the option to acquire an interest in real estate as collateral, it gets priority based on when it's recorded, as long as it's not reliant on the debtor defaulting. For non-residential properties, this option remains valid even if it affects the debtor's rights unfairly, unless it's otherwise illegal. However, this does not apply to residential properties with four or fewer units, and the law does not change the rules for those types of properties.
An option granted to a secured party by a debtor to acquire an interest in real property collateral takes priority as of its recording and is effective according to its terms if the right to exercise the option is not dependent upon the occurrence of a default with respect to the security agreement and, where the real property which is the subject of the option is other than residential real property containing four or fewer units, shall not be deemed invalid or ineffective on the basis that the secured party has impaired the debtor’s equity of redemption in violation of common law or Section 2889. This section shall not be construed to make valid or
effective an otherwise unlawful option nor shall any inference be drawn from this section as to the validity or application of common law with respect to residential real property containing four or fewer units.
secured party debtor real property collateral
