Discovering whether there’s a lien on your property might not be at the top of your to-do list—until it becomes necessary. Whether you’re preparing to sell, refinance, or simply want peace of mind, knowing how to find liens on a house is a smart move. If you’re looking to buy property in Houston or a house in Seattle, understanding how to search if a property has any liens can save you from unexpected headaches. In this Redfin article, we’ll walk you through what liens are, why they matter, and exactly how to check a lien on a house or potential investment.
What are liens?
A lien is a legal claim against a property that secures a debt or obligation. When a lien is placed on a property, it essentially means that the property is being used as collateral to ensure payment of a debt. Liens can arise from various financial obligations, including unpaid taxes, missed mortgage payments, or services rendered by contractors. If the debt isn’t resolved, the lienholder may have the right to take legal action, which could potentially lead to foreclosure or the forced sale of the property. Understanding what liens are and how they work is crucial, especially when buying or selling real estate.
Why it’s important to check for liens on your property
Checking for liens on your property isn’t just a routine task—it’s a critical step in protecting your financial stability and ensuring smooth real estate transactions. Liens can affect your ability to sell or refinance your home, and unresolved liens may lead to legal actions, including foreclosure. Whether you’re preparing for a move, considering a home equity loan, or simply maintaining your property’s clean title, uncovering liens early can save you from unexpected costs and stress down the road.
Types of liens you might encounter
Each type of lien carries different implications for property owners and potential buyers, making it essential to identify and address liens early in the real estate process.
- Mortgage liens: These are the most common type of lien and are standard with any home purchase involving financing. If the homeowner defaults on their mortgage, the lender can initiate foreclosure to recover the owed amount.
- Tax liens: Filed by the government when property or income taxes remain unpaid. Tax liens can come from federal, state, or local tax authorities and can take priority over other types of liens.
- Mechanic’s liens: These arise when contractors, builders, or service providers perform work on a property but do not receive payment. Mechanic’s liens ensure that service providers can recoup costs for labor or materials.
- Judgment liens: These liens are the result of legal action. If a creditor wins a lawsuit against a property owner, they may place a judgment lien on the property to secure repayment of the debt.
- HOA liens: Homeowners associations (HOAs) can place a lien on a property if association fees, dues, or special assessments are not paid. These liens can complicate property sales and refinancing efforts.
How to find out if there is a lien on your house
Checking for liens can prevent legal or financial issues. Here’s how to do it:
1. Check with your county recorder’s office
The county recorder or assessor’s office is often the first stop for discovering liens on a property. Many counties maintain online databases where you can search property records by address or the owner’s name. These records often show active liens, property transfers, and historical ownership details. You can also request a formal title search, which might require a small fee but provides a comprehensive look at any existing claims against your property.
2. Use an online title company
For a more thorough lien search, consider using an online title company. Many title companies offer services that delve into property records, revealing not just liens but also any other potential title issues. This option is especially valuable if you’re preparing for a real estate transaction, as title companies often provide insurance to protect against undiscovered claims.
3. Review your property tax records
Unpaid property taxes can lead to a tax lien, which is often recorded publicly. You can check for these liens by accessing your local tax assessor’s website, where many property tax records are available to the public. If you discover unpaid taxes, it’s important to address them quickly to prevent the lien from escalating.
4. Contact a title company or real estate attorney
If you need a detailed or official lien search, it’s wise to consult a professional. Title companies and real estate attorneys have the expertise and resources to conduct a comprehensive lien search. This approach is particularly useful when buying or selling a home, as a clean title is necessary to complete the transaction smoothly.
5. Check with your mortgage lender
Your mortgage lender might already have information about any liens on your property. This is particularly true if the lien is related to missed mortgage payments or home equity loans. Contacting your lender can provide valuable insights and help you address any issues before they become problematic.
What to do if you discover a lien
Discovering a lien on your property can be concerning, but taking the right steps can help you resolve the issue smoothly:
- Verify the lien: Start by confirming that the lien is legitimate and accurate. Review all relevant documents to ensure the lien amount, reason, and lienholder information are correct.
- Contact the lienholder: Reach out to the lienholder directly to clarify the debt, understand the total amount owed, and explore repayment options. Clear communication can prevent misunderstandings and facilitate a quicker resolution.
- Negotiate a settlement: If your finances allow, consider negotiating a payoff or settlement to clear the lien. In some cases, lienholders might accept a reduced amount if it means settling the debt quickly.
- Consider legal help: If you believe the lien is invalid or if the debt is disputed, consulting a real estate attorney is a wise move. They can guide you through the legal process and help challenge the lien if necessary.
- Request a lien release: Once the lien is paid off, ensure the lienholder files a lien release with your county recorder’s office. This step is crucial for officially removing the lien from your property records.
Taking these steps promptly can help protect your property rights and maintain your ability to sell or refinance your home without complications.
Lien on property FAQs
1. Can I sell my house if there is a lien on it?
Yes, but the lien will need to be paid off during the closing process, typically through the proceeds of the sale.
2. How much does a lien search cost?
The cost can vary widely. A simple search at the county recorder’s office may be free or under $50, while a professional title search might range from $100 to $500.
3. What happens if I don’t address a lien on my property?
Ignoring a lien can lead to foreclosure or difficulties in selling or refinancing your home.
4. Can a lien be removed without payment?
In some cases, you might be able to dispute the lien in court if it is not legitimate. However, most liens require payment or settlement to be removed.
5. Can I buy a property with an existing lien?
Yes, but it’s important to perform a thorough title search and understand that you might become responsible for settling the lien before obtaining clear ownership of the property.
6. How long does a lien stay on a property?
Liens can remain on a property until the debt is paid or the lien is legally released. Some liens, like tax liens, may have expiration dates, but others can remain indefinitely if not addressed.
7. Will a lien affect my credit score?
Certain liens, like judgment liens, can negatively impact your credit score. However, not all liens are reported to credit bureaus.
8. What’s the difference between a voluntary and involuntary lien?
A voluntary lien is agreed upon by the property owner, like a mortgage lien. An involuntary lien is imposed by law, such as a tax lien or mechanic’s lien, often due to unpaid debts.
9. Can I negotiate a lien payoff for less than the full amount?
Yes, in some cases, you can negotiate a settlement with the lienholder, especially if the debt is old or the lienholder is willing to settle quickly.
10. How do I get a lien release?
Once the debt is paid, request a lien release from the lienholder. Ensure this document is filed with your county recorder’s office to officially clear the lien from your property records.
11. What’s the difference between recorded and unrecorded liens?
Recorded liens are publicly documented, like mortgages and tax liens. Unrecorded liens, such as unpaid city fines or utility bills, may not appear in public records but can still affect ownership.