What are Liens?

A lien is a legal claim against a property. A lien can be put against a property by anyone who is owed money by the property owner. The lien holder may be a contractor, a former spouse or they may even be deceased. The lien stays with the title - regardless of who owns the property. This is the reason why title searches are essential. In order to clear a lien, it must be paid, the lien holder (or his executor) must "sign off" or a bond must be posted. Posting a bond would be done most often when the present owner of a property wishes to sell but is disputing the validity of the lien. The owner can post a bond, thereby releasing clear title to the house and then deal with the lien holder in court. When someone signs off, it generally means that they sign a "quitclaim" deed. Signature of this deed means that the lien holder releases any rights he may have, without laying claim to the property.

If a lien is discovered against a property you wish to buy or sell, your Realtor® will be able to advise you as to your options.