Selling a home is already a major undertaking, but when there’s a lien on the property, the process can get more complicated. A lien is essentially a legal claim against your property due to unpaid debts, taxes, or judgments. If you’re asking, “Can you sell a house with a lien on it?” the short answer is yes, but it’s not as straightforward as a traditional sale.
In this Redfin Real Estate article, we’ll break down what a lien is, how it affects your home sale, and the steps you can take to successfully sell your property, even if a lien is attached.
What is a lien on a house?
A lien is a legal right or claim against a property by a creditor. It gives the creditor the right to be paid from the sale of the property. Common reasons for liens include:
- Unpaid property taxes
- Outstanding mortgage payments
- Unpaid contractor or construction bills (mechanic’s lien)
- Court judgments or legal disputes
- Unpaid child support or alimony
A lien doesn’t mean you can’t sell your house. However, it does mean you’ll need to deal with the lien, either by paying it off or negotiating with the creditor, before transferring clear ownership to the buyer.
Can you sell a house with a lien on it?
Yes, you can sell a house with a lien on it, but the lien must be resolved during the closing process. Most buyers (and their lenders) require a clear title, meaning no outstanding claims on the property. Typically, the lien needs to be paid off using the proceeds from the home sale, and a settlement or negotiation is made with the creditor to release the lien.
In rare cases, a buyer may agree to take on the lien (usually in a cash sale).
Steps to sell a house with a lien
1. Verify the lien
Request a title search or check with your county records to confirm any liens on your property.
2. Determine the amount owed
Once verified, contact the lienholder to find out the payoff amount, including interest or fees.
3. Negotiate the lien
Sometimes, creditors will…