Real Estate Lien Information

Real estate liens place title restrictions on a piece of property.

Real estate liens place title restrictions on a piece of property.

A real estate lien attaches to a home’s title and prevents the homeowner from enjoying a clear title until the debt that initiated the lien is paid off and the creditor removes the lien. Because liens attach to property, a piece of real estate can carry a lien after being transferred to a new owner. This isn’t common, however, as buyers typically prefer to purchase homes with clear titles to avoid paying the previous owner’s debts.


A real estate lien gives the creditor a security interest in the property. This grants the creditor the legal right to foreclose on the property in the event the debtor fails to pay off his debt. Although a real estate lien can remain with a piece of property after a sale, should a homeowner attempt to refinance his property, he cannot do so without paying off any outstanding liens.


Real estate liens vary considerably. Mortgage liens are real estate liens mortgage lenders place against a home until the borrower pays off his mortgage loan. Judgment liens are liens placed upon a home by a creditor, such as a collection agency, after a lawsuit. Tax liens are liens levied by the county or IRS for unpaid taxes, and mechanic’s liens are title encumbrances placed upon a home by a craftsman or laborer in lieu of payment for services rendered.

Time Frame

Mortgage liens don’t expire and can only be removed once a homeowner pays off his loan. All other types of liens, however, expire after a pre-set time period. Federal tax liens expire after ten years, but are renewable. A judgment’s lien’s expiration depends upon the validity of the judgment itself. Once the judgment expires, so does the lien. Mechanic’s liens expire after a relativity short time period. In California, for example, a mechanic’s lien is only valid for 90 days.


While a homeowner can remove a lien against her property by paying off the debt that initiated the lien, she has other options for removing the lien, as well. If the lien is the result of a court judgment, contesting the court judgment and having it overturned will result in the creditor being forced to withdraw the lien. In addition, the IRS allows homeowners to request a discharge of their tax liens in order to transfer property. Negotiating a settlement with the IRS will also result in lien removal.


According to Texas A&M University, if the homeowner does not pay the debt and the lien is still valid, a creditor may use it to foreclose on the individual’s home. Foreclosure terminates any liens that were recorded after the creditor’s lien. The creditor, however, must pay off any liens that were filed prior to its lien. This is known as “lien priority.”

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