Checking for Liens on Your Property

Quick answer

• You can request a lien search from a title company or real estate attorney.
• Public records at your county recorder’s office are another source for lien information.
• A preliminary title report is often the first step in a professional lien search.
• Understand that liens can affect your ability to sell or refinance your property.
• Be prepared to pay fees for professional lien searches.
• Reviewing the property’s title history is crucial.

Who this is for

• Homeowners considering selling their property.
• Individuals looking to refinance their mortgage.
• Buyers who want to ensure a clear title before purchasing a property.

What to check first (before you act)

Goal and timeline

Before you begin checking for liens, clearly define why you need this information and when you need it. Are you planning to sell your home in the next six months? Do you need to refinance your mortgage within the next year? Your timeline will influence how quickly and thoroughly you need to conduct your search. A looming deadline may necessitate hiring a professional, while a more flexible timeline might allow for a DIY approach.

Current cash flow

Understanding your current financial situation is important, especially if you anticipate needing to pay off any discovered liens. Review your income, expenses, and savings. This will help you determine if you have the financial capacity to address any outstanding debts that might be attached to your property.

Emergency fund or safety buffer

Having an emergency fund is crucial in personal finance. If a lien is discovered, you may need immediate access to funds to resolve it. Ensure your emergency fund is adequate to cover unexpected expenses, including potential lien payoffs, without derailing your overall financial stability.

Debt and interest rates

Identify all existing debts, especially those secured by your property, such as your primary mortgage. Also, consider other potential debts that could lead to a lien, like unpaid property taxes, contractor bills, or judgments. Knowing the interest rates on these debts will help you prioritize which ones to address.

Credit impact

Liens can negatively impact your credit score, especially if they result from unpaid debts. A clear title is essential for future financial transactions. Understanding the potential credit implications of any discovered liens will motivate you to resolve them promptly.

Step-by-step (simple workflow)

1. Define Your Objective

What to do: Clearly state why you are checking for liens. Is it for a sale, refinance, or peace of mind?
What “good” looks like: You have a specific reason and timeframe for your lien search.
A common mistake and how to avoid it: Not having a clear goal can lead to an overly broad or insufficient search. Avoid this by writing down your objective before starting.

2. Gather Property Information

What to do: Collect your property’s legal description, parcel number, and previous ownership details.
What “good” looks like: You have all necessary identifiers for your property readily available.
A common mistake and how to avoid it: Missing or incorrect property identifiers can lead to searching the wrong records. Double-check these details from your deed or tax statements.

3. Research County Records (DIY Option)

What to do: Visit your county recorder’s office (or their website) and search for recorded documents related to your property.
What “good” looks like: You are able to access and navigate the county’s public record system.
A common mistake and how to avoid it: Public record systems can be complex. Avoid frustration by asking for guidance from county staff or using online tutorials if available.

4. Look for Specific Document Types

What to do: Specifically search for deeds, mortgages, mechanic’s liens, tax liens, and judgment liens.
What “good” looks like: You understand what types of documents indicate a lien and are actively looking for them.
A common mistake and how to avoid it: Overlooking common lien types can leave you with an incomplete picture. Be thorough in your search for all potential lien documents.

5. Understand Recorded Dates

What to do: Pay attention to the dates documents were recorded. Newer filings are more relevant.
What “good” looks like: You can differentiate between historical and current filings.
A common mistake and how to avoid it: Focusing only on the most recent documents might miss older, unresolved liens. Review a reasonable history, not just the last few months.

6. Review Preliminary Title Report (Professional Option)

What to do: Engage a title company to perform a preliminary title search.
What “good” looks like: You receive a report detailing ownership history and any encumbrances.
A common mistake and how to avoid it: Assuming the report is exhaustive without understanding its scope. Ask the title company what is included in their search.

7. Consult a Real Estate Attorney

What to do: Hire an attorney specializing in real estate to conduct a comprehensive title examination.
What “good” looks like: You have professional assurance that all potential liens have been identified.
A common mistake and how to avoid it: Choosing an attorney without real estate expertise. Ensure they have a proven track record in title and lien matters.

8. Analyze Findings

What to do: Carefully review all documents and reports to identify any active liens.
What “good” looks like: You have a clear list of any liens, their amounts, and the issuing parties.
A common mistake and how to avoid it: Misinterpreting legal jargon or the significance of a lien. If unsure, seek clarification from a professional.

9. Address Discovered Liens

What to do: If liens are found, contact the lienholder to understand payoff requirements.
What “good” looks like: You have a plan to resolve any identified liens, either through payment or negotiation.
A common mistake and how to avoid it: Ignoring liens hoping they will disappear. This can lead to legal action and further complications.

10. Obtain Lien Releases

What to do: Once a lien is satisfied, ensure you receive a formal lien release document.
What “good” looks like: You possess documented proof that each lien has been officially cleared.
A common mistake and how to avoid it: Failing to get a recorded lien release. This can cause problems later, making it appear the lien is still active.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not knowing your property’s legal description	Inability to accurately search public records	Obtain it from your deed or county assessor’s office.
Relying solely on online county records without verification	Missing crucial details or outdated information	Supplement with in-person visits or professional services.
Ignoring older, unreleased liens	Future legal disputes or inability to sell/refinance	Conduct a thorough historical title search.
Misinterpreting a “Notice of Pendency” (Lis Pendens)	Underestimating the severity of a legal claim against your property	Consult an attorney immediately.
Assuming a clear title just because you haven’t received bills	Failing to detect liens filed by third parties for services you weren’t aware of	Perform regular title checks, especially before major transactions.
Not understanding mechanic’s lien timelines	Missing the window to dispute or resolve a contractor’s claim	Be aware of state-specific filing deadlines and your rights.
Paying off a lien without getting a formal release	The lien may still appear on your title	Always obtain and record a formal lien release document.
Not checking for federal tax liens	These can be difficult to remove and have significant consequences	Specifically inquire about federal tax liens during your search.
Assuming a quitclaim deed clears all liens	A quitclaim deed only transfers interest, it doesn’t guarantee a clear title	Always conduct a full title search regardless of deed type.

Decision rules (simple if/then)

• If you are selling your house, then you must check for liens because a buyer’s lender will require a clear title.
• If you are refinancing your mortgage, then you should check for liens because your new lender will need to be in first position.
• If you receive a notice about an unpaid bill related to your property, then investigate it immediately because it could lead to a lien.
• If you hired a contractor and paid them, but they claim they weren’t paid, then check for a mechanic’s lien because they may have filed one.
• If you discover a judgment lien, then consult an attorney because these can be complex to resolve.
• If you are buying a property, then always get a title insurance policy because it protects you from undiscovered liens.
• If you find a tax lien, then prioritize paying it because these can lead to foreclosure by the government.
• If you are considering a DIY lien search, then be prepared to spend significant time and effort because public records can be cumbersome.
• If you need a quick and definitive answer, then hire a title company or real estate attorney because they have the expertise and tools for a thorough search.
• If a lien amount seems incorrect, then contact the lienholder to dispute it because errors can occur.
• If you are unsure about how to interpret a recorded document, then seek professional advice because legal documents require careful understanding.

FAQ

What is a lien on a property?

A lien is a legal claim against your property, typically to secure payment of a debt. It gives the lienholder the right to seize and sell your property if the debt is not paid.

What are the most common types of liens?

Common liens include mortgage liens, property tax liens, mechanic’s liens (for unpaid construction work), judgment liens (from lawsuits), and federal or state tax liens.

How long does a lien stay on a property?

The duration of a lien varies greatly depending on the type of lien and state laws. Some liens, like property tax liens, can lead to foreclosure if not paid within a certain period. Others may remain until the debt is satisfied or a statute of limitations expires.

Can I sell my house with a lien on it?

Generally, it is very difficult to sell a house with an active lien. Most buyers’ lenders will not approve a mortgage for a property with encumbrances, and buyers typically want a clear title. You will usually need to pay off the lien before or at closing.

What is a title search?

A title search is an examination of public records to determine the ownership history of a property and identify any liens, encumbrances, or other claims against it.

How much does it cost to check for liens?

DIY searches using public records are usually free, though they require your time. Professional title searches or attorney consultations can range from a few hundred to over a thousand dollars, depending on the scope and location.

What is a lien release?

A lien release is a legal document that a lienholder provides when a debt has been fully paid. It officially removes the lien from the property’s title. It’s crucial to ensure this document is recorded with the county.

Can a lien impact my credit score?

Yes, many types of liens, especially those arising from unpaid debts like judgments or tax liens, can negatively affect your credit score.

What this page does NOT cover (and where to go next)

• Specific legal advice for resolving complex lien disputes. Consult a real estate attorney for guidance tailored to your situation.
• Detailed information on specific state laws regarding lien priority and foreclosure. Research your state’s statutes or consult local legal counsel.
• Strategies for negotiating with lienholders. This often requires professional assistance or a deep understanding of debt resolution.
• The process of filing a lien yourself. This is a separate legal process with its own set of rules and requirements.