What Should I Know About Property Liens

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What Should I Know About Property Liens

1. A Property Lien Is a Legal Claim for Unpaid Debts

Liens are usually placed on a home when the owner owes money they haven’t paid. Common reasons include:

  • Unpaid property taxes
  • Unpaid contractor or repair bills (mechanic’s liens)
  • Delinquent HOA dues
  • Court judgments or legal disputes

The lien doesn’t mean you lose the home, but it gives someone the legal right to collect what’s owed—often by forcing payment before the home can be sold or refinanced.

2. Liens Must Be Cleared Before You Can Sell or Refinance

If you’re buying a home with a lien, that lien must be resolved before closing—otherwise, the ownership transfer may be blocked. If you already own the home and later want to refinance or sell, an unresolved lien will stop you in your tracks. That’s why it’s so important to handle any liens as early as possible.

3. A Title Search Will Help You Spot Liens Before Closing

Good news: you don’t have to find liens on your own. Your title company or real estate attorney will run a title search to uncover any claims or legal baggage attached to the property. If a lien pops up:
✅ The seller usually has to pay it off before closing
❌ If not addressed, you can walk away or renegotiate
📄 You’ll want title insurance to protect yourself from hidden or unexpected claims after closing

Want to Make Sure Your Home Comes With a Clean Title?

📘 Download our free “First-Time Buyer Game Plan” eBook — includes a title and lien checklist
💬 Chat live now to ask about title searches, insurance, and lien resolution
📞 Schedule a call with a Stairway Mortgage advisor to protect your investment before you close

At Stairway Mortgage, we make sure what you buy is truly yours—
free of hidden claims and full of peace of mind.

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