What Is a Lien and How Does It Affect a Property Sale?

A lien is a legal claim against a property that serves as security for a debt. If a property has a lien, the debt must typically be paid off before the property can be sold or refinanced with clear title.

Common types of liens include: property tax liens (from unpaid property taxes), mechanic's liens (from unpaid contractors or subcontractors), judgment liens (from court judgments against the property owner), IRS tax liens (from unpaid federal taxes), and HOA liens (from unpaid homeowners association dues).

Liens are discovered during the title search process. When Team Goeglein's title officers search a property's records, they identify all recorded liens and list them in the preliminary title report.

Most liens must be satisfied (paid off) before title insurance can be issued and the property can transfer to the new owner. In some cases, liens can be paid from the seller's proceeds at closing, through escrow.

If a lien is discovered on a property you're buying or selling in the South Bay or Westside LA, Team Goeglein will work with all parties to identify the best path to resolution — whether that means payoff through escrow, negotiation with the lienholder, or other remedies.