A lien is a legal claim against a property that serves as security for the payment of a debt or obligation. It gives the lienholder the right to be paid from the property's sale proceeds and, in some cases, the right to force the sale of the property to collect the debt. Liens are one of the most fundamental concepts in real estate law — they affect virtually every transaction and are the primary reason title searches and title insurance exist.
Liens fall into two categories. Voluntary liens are those the property owner agrees to — the most common being a mortgage, where the borrower voluntarily pledges the property as collateral for the loan. Involuntary liens are imposed without the owner's consent — property tax liens, judgment liens, mechanic's liens, and HOA liens are all involuntary because they arise from the owner's failure to pay an obligation rather than from a voluntary agreement.
Lien priority — the order in which lienholders get paid if the property is sold or foreclosed — is critically important. The general rule is "first in time, first in right": the first lien recorded with the county has priority over later liens. However, property tax liens have super-priority status — they take precedence over all other liens regardless of recording date. This means the government can sell the property to collect unpaid taxes, wiping out even first mortgage liens. Federal tax liens (IRS) also have special priority rules.
Liens attach to the property, not to the person — they remain even if the property changes hands. This is why resolving all liens is essential before closing. The title search identifies all recorded liens, and the settlement agent ensures each one is either paid off from the seller's proceeds or otherwise resolved. The closing disclosure itemizes every lien payoff.
At Beycome Title, our lien search is comprehensive — covering county records, court records, tax records, HOA records, and municipal code violations. We identify all liens early in the process and coordinate payoffs to deliver clear title at closing. If a lien cannot be resolved before closing, we communicate with all parties to find a solution. Get your free title quote.