What Is a Lien in Real Estate?

🏡 How a Lien Works in Real Estate

When a debt goes unpaid, a creditor can record a lien against the property. This gives the creditor legal rights to claim payment from sale proceeds before ownership can transfer. Liens “attach” to the property, not the person — so they remain until resolved.

📋 Common Types of Liens in Real Estate

• Mortgage lien: Secures a home loan — released once the loan is paid off.
• Tax lien: Filed by local or federal authorities for unpaid property or income taxes.
• Mechanic’s lien: Filed by contractors or suppliers for unpaid work or materials.
• Judgment lien: Resulting from a court ruling against the property owner.
• HOA lien: Filed for unpaid homeowners association dues or assessments.

All liens must be satisfied or released before a buyer can receive clear ownership.

🔍 How to Check and Clear Liens Before Selling

• Order a title search to uncover any recorded liens.
• Request a payoff statement from your lender or creditor.
• Settle outstanding debts and record lien releases with your title company.
• Verify that all liens are cleared before listing your property FSBO.

Clearing liens early helps avoid delays during closing and ensures a smooth sale.

💡 Why Liens Matter for FSBO Sellers

Buyers and lenders expect clear title. Unresolved liens can stop a sale or reduce offers. Disclosing and resolving them upfront shows professionalism and trustworthiness — two qualities that help FSBO sellers succeed on the MLS.

🏠 List Your Property Once It’s Clear

Brokerless helps FSBO sellers list directly on the MLS after clearing liens — giving you full exposure without paying full commission.

❓ Real Estate Lien FAQ

1. Can I sell my home if it has a lien?

Yes, but the lien must be paid off or cleared during the closing process before ownership transfers.

2. How can I find out if my property has a lien?

Order a title search or contact your title company to review public records.

3. Do liens expire?

Some do after a statutory period, but many remain until paid or legally released by the creditor.

4. What happens if I ignore a lien?

It can lead to foreclosure, legal action, or delays when selling. Always resolve liens early.

5. Are liens public record?

Yes — liens are recorded with your county and appear in title reports during property transactions.