Homebuying is always a process of elimination, and once you choose several properties the next step is making sure they’re lien free. Lang Realty offers a title search service to ensure a deed is clean, meaning there are no other claims or issues. But before you ask your agent for help, new buyers and investors need to know what are liens in real estate. “A property lien is a legal claim on a person’s property by their creditor to recover an unpaid debt or obligation. Once a lien is placed on your home, the creditor can foreclose on the house to recover the debt,” according to the National Association of REALTORS (NAR).
What are the different types of property liens?
- Mortgage lien is placed by a lender who hasn’t been paid for the loan, removing it once the mortgage is paid off. An additional loan like a home equity, home equity line of credit, or a second mortgage can be paid when the house is sold, but the mortgage lender is paid first.
- Property tax lien “entitles the government to recover its dues by foreclosing on your home if you don’t pay your property tax. Property tax liens take precedence over mortgage liens, so not paying property taxes may mean you and your lender lose the property,” according to the NAR.
- A builder’s lien, also called a contractor’s or mechanic’s lien, helps companies, including your real estate agent, recover outstanding fees.
- HOA or a homeowners or condo association can legally place a lien on a property if the owner hasn’t paid the required dues or assessments.
- IRS or federal tax lien is placed on property if an owner can’t or won’t pay overdue taxes.
How to search yourself for liens on property in Florida?
Each county has a property appraiser and you can start there.
How to check for liens before buying a Florida property?
Your Lang Realty agent will check thoroughly for liens before you make an offer on a property.
