How to Identify and Resolve Encumbrances Before Selling Your Home

🏡 Why Sellers Should Check for Encumbrances

Unresolved encumbrances can block closings, reduce your buyer pool, or even cause financing rejections. FSBO sellers often discover issues late — after an offer is accepted. A quick title check before you list can save time and protect your deal.

⚠️ Common Encumbrances That Delay FSBO Sales

• Tax liens — from unpaid property taxes or IRS debts.
• Mortgage or home equity liens — must be paid at or before closing.
• Mechanic’s liens — filed by contractors for unpaid work.
• HOA or deed restrictions — limit property use or require board approval before sale.
• Easements — grant third-party access that may concern buyers.

Each of these can appear in your title report and may require documentation or release before closing.

🔍 How to Identify Encumbrances on Your Property

• Order a preliminary title search through a title company before listing.
• Request a payoff statement from your mortgage lender for any active loans.
• Check public county records for liens, easements, or restrictions filed against your parcel.
• Review your deed and HOA covenants for usage limitations.

Knowing what’s recorded allows you to correct issues proactively — not during negotiations.

🧾 How to Resolve Encumbrances Before You List

• Pay off outstanding debts (mortgage, taxes, or contractor bills) and obtain lien releases.
• Negotiate easement adjustments if they limit access or property use.
• Work with your title company to record releases and clear ownership documentation.
• Disclose remaining encumbrances clearly in your property disclosure to maintain transparency with buyers.

Clearing issues early ensures a smoother sale and faster title approval once you accept an offer.

🏠 List with Confidence on the MLS

Once your title is clear, Brokerless helps you get maximum exposure on the MLS — the same platform agents use — for a simple flat fee.

❓ Encumbrance & Title FAQ

1. Do I need to clear liens before listing FSBO?

Yes. Active liens must be resolved or disclosed. Most title companies won’t insure a sale until liens are paid or released.

2. How long does it take to clear a lien?

Depending on the lien type, it can take from a few days to several weeks after payment to record a release.

3. Can easements be removed?

Some can — others are permanent. Utility easements typically stay with the property indefinitely.

4. Will buyers see encumbrances on MLS listings?

Only if you disclose them in remarks or attachments. Brokerless can help ensure your listing remains compliant and transparent.

5. Should I still get a title search if I own my home free and clear?

Yes. Even without a mortgage, older or unrecorded claims can exist. A title search confirms clean ownership before you sell.