What Should You Do When a Lien Surfaces During a Transaction?
BY
Bobbi Pronin
.
May 27, 2025
Discovering a lien during a routine property search can be an unwelcome surprise—for both buyers and sellers, as well as their real estate agents. Fortunately, title companies are well-versed in identifying and resolving liens, helping ensure that most transactions proceed smoothly and on schedule.
Common Types of Property Liens
Here are the five most common types of liens that may be attached to property:
Mortgage Liens – Placed by lenders to secure repayment of a mortgage loan. If the borrower defaults, the lender may initiate foreclosure.
Property Tax Liens – Imposed by local governments when property taxes go unpaid. Tax liens typically take priority over others.
Mechanic’s Liens – Filed by contractors or suppliers who haven’t been paid for labor or materials used to improve the property.
Judgment Liens – Result from court rulings against the property owner, often due to unpaid debts.
Homeowners Association (HOA) Liens – Filed by an HOA for unpaid dues or assessments.
Each of these liens stems from a debt the homeowner has failed to pay—sometimes without even realizing it.
How Our Team Helps
Your title company plays a crucial role in discovering liens and protecting your investment. Our responsibilities include:
Conducting a Title Search - We examine public records to identify any existing liens or claims against the property.
Resolving Liens - Our experienced team of title experts works to clear any outstanding liens before closing. This may involve paying off debts or negotiating with lien holders to release the claim.
Providing Title Insurance - Title insurance protects the buyer (and the lender) from future claims or undiscovered defects with the property’s title, including hidden liens.
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This material is not intended to be relied upon as a statement of the law, and is not to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice. The material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. Intended for distribution to only one per individual for marketing purposes only on behalf of our company. Not for reproduction.
About Bobbi Pronin
Bobbi Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.
Bobbi is not an employee of Anywhere Integrated Services or affiliated with its title companies.
