Equitable liens
A Practice note that summarises the circumstances in which an equitable lien may arise, its effect, and the key characteristics that distinguish it from othertypes of lien, notably legal or common law liens.. It examines common law, contractual, and statutory liens before focusing on the main types of equitable lien that arise by operation of law, including the unpaid vendor's lien, the purchaser's lien, and the various liens available to solicitors. The note also discusses the general principle that a lien is not created for money spent improving the property of another, and details the recognised exceptions to this rule. Furthermore, this Practice note considers the equitable lien as a proprietary remedy that can be awarded by the court where assets have been misapplied in breach of trust or fiduciary duty, including in cases of mixed substitution or where misappropriated funds are used for improvements.
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