Real estate glossary
Lien
A legal claim against a property for an unpaid debt, such as a mortgage, tax bill or unpaid contractor, usually paid off at closing.
A lien gives a creditor a claim against your property until a debt is paid. Your mortgage is a lien. Others include unpaid property taxes, HOA assessments, judgments and mechanics' liens filed by unpaid contractors.
To give the buyer clear title, liens are normally paid off from your sale proceeds through escrow, and the creditor records a release.
What it means for you as a seller
If the preliminary title report shows a lien you do not recognize, raise it right away. Clearing an old or mistaken lien can take time.
Related terms
- Preliminary title reportAn early report from the title company showing who owns the property and any liens, easements or other items affecting it.
- Payoff statementThe lender's statement of exactly how much it takes to pay off a loan in full on a given date.
- Title insuranceInsurance that protects the buyer (and their lender) against covered problems with ownership that existed before the sale.
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .