A lien is a legal claim against a person’s property that gives a creditor the right to prevent a sale or transfer of that property, seize and sell that property and grant them priority over other creditors in the event of the property’s liquidation.
Common types
The 4 most common types of liens include:
- Judgment liens: These are liens resulting from a court judgment. They allow a creditor to claim the debtor’s property to satisfy a debt.
- Mechanics liens: If a debtor fails to pay contractors or suppliers, this lien attaches to the property.
- Mortgage liens: When a borrower takes out a mortgage, the lender attaches a voluntary lien to the real property. The lender can seize the property if the borrower defaults on the loan.
- Tax liens: Imposed by the government for unpaid taxes. This can affect all property types, including real estate and personal property.
Debtors must resolve liens before proceeding with any transaction on the real estate property.
How to check for liens
Find out if a property has a lien, especially if you plan to buy, sell or refinance. Here are some effective methods to check for liens:
- Check government records: Go to your local county record, county assessor or local courthouse for their public records.
- Use an online property lien search tool: Several websites offer property lien search services for a fee.
- Consider consulting an attorney: If you are involved in a real estate transaction, you might as well consider consulting an attorney to see you through your transaction. Aside from checking for liens, they can check for other title issues the property may have.
Ensuring a property is clear of liens and any other title issues ensures that your real estate transaction goes smoothly and with fewer delays.