How is a verbal agreement NOT a legally binding contract? Of course it is, albeit not a contract in the traditional sense. A verbal agreement is the same as a verbal contract. Diamond merchants do many deals verbally, are they exposed to people welching on them with hundreds of thousands of dollars in the balance? Of course not.

That said, in order to get the lien a judge or arbitrator will have to make a ruling whether the debt is valid. Sounds like this is a threat meant to get the matter resolved.

Nope,it must be tested in a court of law and then decided by a judge,then put into action for the prosecutor to act on.

If there is no written and therefore binding contract, the party who made the loan is out of luck. They cannot put a lein on someone’s property just on their “say so”.

no