Perfected Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Perfected, written in plain English, along with examples of how it is used.
What is Perfected?
completing all lawful steps to accomplish a task successfully.
History and Meaning of Perfected
The term "perfected" refers to the completion of all steps necessary to legally establish a right, title or interest in a property, security or asset. In order to achieve a "perfected" status, certain procedures need to be followed and documents need to be filed with the appropriate government entities. Once these steps are completed, the owner of the property, security or asset can be certain that their right is legally recognized and protected.
Examples of Perfected
- When a lien has been filed against a property and all necessary paperwork, such as a mortgage or deed of trust, has been recorded, the lienholder has "perfected" their interest in the property.
- If a lender has taken all necessary steps to record a security interest on a borrower's property, they can be said to have "perfected" that interest.
- In a bankruptcy case, a creditor must "perfect" their claim in order to receive any payout from the debtor's estate. This means that they have completed all required paperwork and filed their claim with the court by the deadline.
Legal Terms Similar to Perfected
- Unperfected: When a right, title or interest in a property, security or asset has not been legally recognized or protected.
- Priority: The order in which different liens or interests in a property or asset will be recognized and paid out in the event of a sale or liquidation.
- Title: The legal right to ownership of a property or asset.