Lien
A legal claim against the property, usually for unpaid debt. A lien has to be paid off or released before clear title can transfer.
Your Room opens on this part of the sale, with the offer and everything before it already ticked.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.
See how it worksWhere this comes up in a sale, and what follows
- Buyer's inspection (comes before)
Part 1 of 4
Why a seller cares
A lien has to be paid or released before the deed can pass, and the title search finds them whether or not you remembered. An old contractor's lien or a tax lien can appear on the commitment and hold up closing until it is cleared.
Part 2 of 4
A simple example
The title commitment lists a $1,800 lien from a roofing company paid in cash years ago and never released. A release letter from the roofer clears it; without one, the money is held at closing.
| The lien | How it clears |
|---|---|
| Your mortgage | Paid off from the buyer's funds at closing |
| A roofer's lien you paid in cash | A release from the roofer, or the amount held in escrow |
| A tax lien | Paid at closing; it sits ahead of everything else |
Every lien on the commitment is either paid at closing or released before it. There is no third option.
Part 3 of 4
What people get wrong
That paying a bill releases the lien. Payment is one step; the recorded release is the other, and it is the one the title company wants.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines lien in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.