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.
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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
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