A lien is a legal claim someone has against your property because of a debt, and it has a way of surfacing at the worst moment, when you are trying to sell or refinance. Most liens are straightforward to clear once you know what they are. Here is what a lien is, the common kinds in Virginia, and how each one comes off.
Written by Anthony I. Shin, Esq., Principal and real estate attorney at Prime Title & Escrow
What a lien is
A lien is a recorded claim against your property that secures a debt. It does not take your ownership away, but it attaches to the property and generally has to be paid or otherwise cleared before you can pass clean title to a buyer or give a lender first position. Because it rides with the property, a lien from years ago can still be sitting there when you go to sell.
The liens you actually run into
- Your mortgage, which in Virginia is a deed of trust. This is a lien you agreed to, and it is paid off from the proceeds when you sell.
- Judgment liens, when someone wins a court judgment against you and dockets it, attaching to real estate you own in that locality.
- Tax liens, for unpaid federal income tax, state tax, or local real estate tax.
- Mechanic’s liens, when a contractor or supplier is not paid for work on the property. These carry strict deadlines in Virginia.
- Homeowners or condominium association liens, for unpaid assessments.
- Child or spousal support liens.
Some you agreed to, like the mortgage. The involuntary ones attach without your sign off, because of a debt or a court order.
Why a lien matters when you sell or refinance
A title search turns up recorded liens, and they appear on your title commitment as items that have to be cleared, which I cover in the title commitment. A buyer wants clean title, and a lender wants to be first in line, so outstanding liens generally get paid off or released at or before closing. If a lien is missed, it can pass to the buyer, which is one of the problems an owner’s title insurance policy is there to cover.
For a typical sale, your known liens, the mortgage especially, are simply paid off from your sale proceeds at closing, and the release is recorded. You do not need to clear them weeks ahead. The ones to handle early are the surprises, an old judgment, a forgotten tax bill, a contractor dispute, because those take a little time to sort out.
How a lien gets cleared
Most often you pay the debt and the creditor records a release or satisfaction that removes the lien from the record. The key is that the release is actually recorded, not just that the debt was paid. For a sale, that release is handled as part of closing from your proceeds. Other paths depend on the lien. A mechanic’s lien can sometimes be bonded off so the sale proceeds while the dispute continues. An erroneous or already paid lien can be cleared by getting the proper release recorded. And a stubborn old cloud that no one will release may need a court action to remove. I figure out which path fits and handle the recordings.
Finding liens before they find you
The reason to order a title search early, before you list or refinance, is to surface any liens while there is still time to deal with them. I cover this in clearing title before you sell. Catching a problem in week one is a quick fix. Catching it the day before closing is a scramble.
How I handle liens
I run the title search, identify every recorded lien, get payoff figures or releases, clear what can be cleared, and make sure each release is recorded so your title is actually clean and not just paid. When a lien is disputed or wrongly recorded, I sort out the right way to remove it, so it does not come back to haunt the next sale.
Send me the address and I will run it down, tell you what is recorded against the property, and clear what needs clearing so your sale or refinance stays on track in Virginia or West Virginia.
Get Your Free Quoteor call (703) 552-4155Frequently asked questions
What is a lien on a house?
A lien is a recorded legal claim against your property that secures a debt. It does not transfer ownership, but it attaches to the property and generally has to be paid or released before you can sell with clean title or refinance.
What kinds of liens can be on a property in Virginia?
Common ones include your mortgage or deed of trust, judgment liens from a court case, federal, state, or local tax liens, mechanic’s liens from unpaid contractors, and homeowners or condominium association assessment liens.
Do I have to pay off a lien before I sell?
Usually the lien is paid from your sale proceeds at closing and the release is recorded then, so you do not pay out of pocket ahead of time. Surprise liens, like an old judgment or tax bill, are best handled early because they take time to clear.
How do I get a lien removed?
Most liens are removed by paying the debt and having the creditor record a release or satisfaction. The important step is that the release is actually recorded. Disputed or wrongly recorded liens can sometimes need a correction or a court action to clear.
What happens if a lien is missed at closing?
If a recorded lien is not cleared, it can pass to the buyer with the property. This is one of the risks an owner’s title insurance policy is designed to cover, which is why a title search and a policy matter on every purchase.
How do I find out if there is a lien on my house?
A title search of the public records will show liens recorded against the property. Ordering one early, before you list or refinance, gives you time to clear anything that turns up rather than discovering it at closing.
This article is general information about liens on residential property in Virginia and West Virginia. It is not legal advice for your specific situation, and clearing a particular lien depends on its type and facts. Please confirm the details with me directly.