What Does Having a Lien on My Home Mean?

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When selling your home, a closing attorney/title company will run a title search and check for any liens on your property. If they do find a lien, this means that before this transaction can go through, you’ll have to deal with this lien, which was placed on your property by entities that claim you owe them money. Here’s everything you need to know about what happens when you have a lien on your home – thanks to this realtor.com article.

A lien is a legal notice that’s placed on file because of an unpaid debt. For example, if you haven’t paid your real estate taxes, the government might impose a lien on your property. A mechanic’s lien or a construction lien might be placed by a contractor who’s done work on your home but hasn’t been paid. These liens are found when the closing attorney/title company searches your property’s history. If a lien is found, the attorney’s office/title company will contact you and inform you how much you owe and to whom you need to pay. Payment always falls on the seller. A “release of lien” will have to be filed before the sale of the property can take place. You can get a “release of lien” three ways:

1. Provide proof (in the form of receipts or otherwise) that there is no debt owed or that it was paid.
2. Pay the lien or agree to pay the lien at closing with the proceeds from the sale of the home.
3. Dispute the lien and get a court decision requiring release of the lien without payment.