An Introduction to Property Liens

As a real estate attorney, Henrietta Feldman works with buyers and sellers in both Florida and Massachusetts. Henrietta Feldman comes to this role with a detailed knowledge of property liens and how they affect a sale.

A lien on a property can interfere with the smooth sale of that piece of real estate. The lien itself functions as a notice of an unpaid debt, which the property owner must pay off in order to clear the property title.

One common source of property lien is an unpaid county, state, or federal tax bill. These are most common among homeowners with sporadic income or other circumstances that make wage garnishment difficult. If the lien is large, the government may choose to force sale of the property to collect.

Homeowners who have lost a case in court may have what is known as a judgment lien, the payoff of which goes to the plaintiff in the case in question. Somewhat similar is the mechanic's lien, which a contractor or other service provider may place on a title if a bill goes unpaid. The service provider must record this within one to six months of the unpaid bill, and must then file a lawsuit within a year in order to collect.

Creditors may force the sale of the property to collect the lien. Such events are rare, however, as mortgages typically take precedence over any liens. This means that a foreclosing creditor would need to take on mortgage payments. The average creditor tends to find it more financially viable to wait for the homeowner to sell at will and use the purchase price to pay off the lien.