What is a lien on a property?

A lien is a recorded legal claim against real property that secures payment of a debt. Voluntary liens are ones you agreed to, principally your mortgage and any home equity borrowing. Involuntary liens are imposed: property tax liens for unpaid taxes, federal tax liens from the IRS, mechanic's or construction liens filed by contractors and suppliers who were not paid, judgment liens from a court award against you, and HOA liens for unpaid dues. Liens generally attach to the property rather than to you personally, which is why they must be resolved before a sale can convey clear title.

Priority determines who gets paid in a forced sale, and it is usually chronological by recording date with important exceptions. Property tax liens typically take priority over everything including a first mortgage, which is why unpaid property taxes are so dangerous even for an owner with no mortgage problems. Mechanic's liens in many states relate back to the date work began rather than the date of filing, which can leapfrog them ahead of loans recorded in between, a detail that surprises both owners and lenders.

Two practical situations. If you are buying, the title search exists to find these, and the title company will require payoff and release of outstanding liens at closing, which is precisely the protection title insurance backs up. If you discover a lien against your own property, options depend on type: pay and obtain a recorded release, dispute an invalid or expired lien through the process your state provides, negotiate a settlement, or in the case of a contractor lien, verify whether proper notice requirements were followed since defective filings can be challenged. A lien you ignore does not expire quietly in most cases; it accrues interest and surfaces at the worst moment, which is when you are trying to sell or refinance.