Property liens are a common but often misunderstood aspect of real estate ownership and transactions. Whether you are buying, selling, or refinancing a property, the presence of a lien can complicate the process. Understanding how a real estate lawyer handles property liens can help property owners and buyers avoid delays, financial surprises, and legal disputes.
What Is a Property Lien?
A property lien is a legal claim placed on a property by a creditor to secure payment of a debt. Liens may arise for many reasons, including unpaid taxes, contractor work, homeowner association fees, or court judgments. While a lien does not necessarily prevent a property from being sold, it typically must be resolved before a clear title can be transferred.
Common Types of Property Liens
There are several types of liens that a real estate lawyer commonly encounters:
- Tax liens, which result from unpaid federal, state, or local taxes
- Mechanic’s liens, filed by contractors or subcontractors for unpaid labor or materials
- Judgment liens, stemming from court rulings against a property owner
- Mortgage liens, created when a lender finances a property purchase
Each lien type has specific legal requirements and timelines, making professional guidance especially valuable.
How a Real Estate Lawyer Identifies Liens
One of the first steps a real estate lawyer takes is reviewing the property’s title report. This document reveals recorded liens and other encumbrances that could affect ownership rights. Lawyers analyze the validity of each lien, verify whether it was properly filed, and determine how it impacts the transaction.
In some cases, liens may be outdated, improperly recorded, or already satisfied but not released. A real estate lawyer works to clarify these issues before they become obstacles.
Resolving Property Liens
Resolving a lien depends on its type and circumstances. A real estate lawyer may help negotiate payoff amounts, coordinate payments during closing, or challenge liens that are invalid or overstated. For example, mechanic’s liens may be disputed if proper notice requirements were not met, while tax liens often involve coordination with government agencies.
Legal guidance is especially important when multiple liens exist, as priority rules determine which creditors are paid first from sale proceeds.
Protecting Buyers and Sellers
For buyers, a real estate lawyer ensures that liens are addressed so ownership transfers with clear title. For sellers, legal counsel helps resolve outstanding claims efficiently, reducing the risk of delayed or canceled transactions. This protection is particularly valuable in commercial transactions or complex residential sales.
Law firms such as May Herr & Grosh regularly assist clients with lien-related issues, helping them understand their options while ensuring compliance with local and state regulations.
Why Legal Guidance Matters
Property liens involve technical legal rules that can vary by jurisdiction. A real estate lawyer brings clarity to these complexities, helping clients navigate title issues, negotiate resolutions, and complete transactions with confidence.
Conclusion
Property liens are a critical consideration in real estate transactions, but they do not have to derail a sale or purchase. By identifying, evaluating, and resolving liens, a real estate lawyer plays a key role in protecting clients’ interests and ensuring a smooth transfer of property. Whether you are facing an unexpected lien or planning a real estate transaction, understanding how these legal claims are handled can help you make informed decisions and avoid costly delays.