What Is Lien?
Lien: A legal claim against a property as security for a debt.
A lien is a legal claim against a property that secures a debt. Until it's paid, it stays attached to the property, and usually must be cleared before the property can be sold with clear title.
Common liens
- Mortgage or deed of trust: the lender's lien
- Tax liens: unpaid property, income or other taxes
- Mechanic's liens: unpaid contractors or suppliers
- Judgment liens: from court judgments against the owner
- HOA liens: unpaid association dues
At closing
The seller's existing liens are paid from the sale proceeds, and releases are recorded. Your new lender's lien is recorded with the deed.
Good to know
Liens found in the title commitment must be resolved before closing. Title insurance protects you against liens that were missed.