Tax lien
A lien for unpaid property taxes. Tax liens usually sit ahead of every other lien, including mortgages. Long-unpaid taxes can lead to a tax sale.
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Free to set up. No credit card.Part 1 of 4
Why a seller cares
Unpaid property taxes sit ahead of every other lien, including the mortgage, and they are paid first at closing. A few years of missed taxes can end in a tax sale, so the search treats them as urgent.
Part 2 of 4
A simple example
The title search shows two years of unpaid property taxes, $6,800 with penalties. They are paid from your proceeds before the mortgage is.
| What is owed | What happens at closing |
|---|---|
| This year's taxes, not yet due | Prorated between you and the buyer |
| Two years of delinquent taxes | Paid in full, first, from your proceeds |
| A tax sale certificate already issued | Redeemed at closing, with interest, or the sale cannot close |
Taxes are paid before anyone else, because the county's lien outranks everyone else's.
Part 3 of 4
What people get wrong
That the mortgage company was paying the taxes. If the loan has no escrow account, nobody was, and the county's lien grows quietly.
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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