When buying or selling a home, there are many legal details that can impact the process — and one of the most important is a lien. But what exactly is a lien, and why should you care about it?
What Is a Lien?
A lien is a legal claim or hold on a property due to unpaid debts. These debts can be from unpaid taxes, contractor fees, mortgages, or other financial obligations tied to the property. When a lien exists, it means someone has a legal right to the property’s value until the debt is cleared.
Why Do Liens Matter in Real Estate?
If you’re planning to sell your home, any liens must be resolved before the sale can close. Otherwise, the buyer won’t receive a clear title, and the transaction could be delayed or even fall through. For buyers, discovering a lien late in the process can cause unexpected costs or legal complications.
How to Protect Yourself From Liens
Title Search: Always request a thorough title search to uncover any existing liens.
Clearance: Work with your agent and a title company to resolve liens before closing.
Legal Help: Consider consulting a real estate attorney if you find complex liens.
Bottom Line
A lien might sound like a complicated legal term, but understanding it can save you from major headaches during your real estate transaction. Don’t let unpaid debts on a property surprise you — knowledge is power!
Ready to buy or sell with confidence?
Contact us today for expert guidance and a clear path to your next home!
📞647 560 9377
📧[email protected]
👩🏽💻claudiawrightrealestate.com