10/03/2022
As a buyer, the last thing you want to do is find the perfect property, get your offer accepted and then have the deal fall apart because of a lien. This has happened to many buyers and owners before, so here’s how to avoid it.
First, some background info. A lien is a legal notice attached to the property title that denotes an unpaid debt. Basically, it means that a third party (like a contractor, tax collector or court) has a legal claim on the property due to an unpaid debt. Not great, especially when the house can’t sell until that debt is paid.
So before you put an offer in on a property, do a quick check of the public records. Since liens are public, all you need to do is go to your town or county assessor's website and search for the property’s address. This is usually free, although some localities will charge a small fee.
If any liens come back, don’t panic. Find out if the owners have paid them off and have proof of a lien release.
If the liens haven’t been paid off, you’ll need to work with the seller to find a resolution. The seller could pay off the liens and then go through with the seller, but if they don’t have the funds, you’ll have to pay the liens to finish the sale or walk away from the deal.
This is why looking up liens is always a smart idea before putting in an offer!
