What happens to the lien of a lienor who does not institute a suit after receiving a Notice of Contest of Lien?

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When a lienor receives a Notice of Contest of Lien and fails to file a lawsuit within a specified time frame, the lien is extinguished automatically. This provision is designed to ensure that creditors or lienors take prompt action to enforce their rights regarding a lien. The process holds lienors accountable for actively pursuing their claims; if they do not respond accordingly, the lien they filed becomes invalid. This mechanism promotes clarity in property titles and protects property owners from indefinite claims against their properties. Thus, the outcome ensures that unvalidated or neglected liens do not linger, allowing for a more organized and reliable system for transactions in property law.

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