What Should I Know About Property Liens?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
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.
Need help navigating lien issues or finding legal professionals? Get An Introduction to experienced real estate attorneys and title companies who can help you understand, resolve, or negotiate lien claims.
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.
If you’re planning to sell a property with lien concerns, understand your options. Visit our Sell a House page to explore strategies for clearing liens before listing and maximizing your proceeds from the sale.
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
Before buying any property, get a clear picture of its value and any potential issues. Get a Free Home Evaluation to understand market value and ensure you’re not overpaying for a property with lien complications.
Ready to move forward with your purchase? Calculate your Conventional Purchase Loan Payment now to understand your financing once lien issues are resolved and you’re ready to close with a clear title.
Want to Make Sure Your Home Comes With a Clean Title?
At Stairway Mortgage, we make sure what you buy is truly yours—free of hidden claims and full of peace of mind.
📘 Download our homebuyer guides about title issues and liens.
🤝 Get An Introduction to title professionals and attorneys.
🏠 Get a Free Home Evaluation before making an offer.
📊 Check Current Rates for your financing options.
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