Maybe you found the perfect property and want more information on its history, or you heard about an investor getting burned by property liens in the past. Whatever the reason, knowing how to find out if there is a lien on a property (whether you’re interested in residential or commercial real estate) can save you a lot of time and trouble. 

A lien is any legal claim on the title of a property made by another party. These occur when payment for a service or outstanding loan goes unpaid, and may be more common than you think. 

In 2021, 71% of contractors filed liens over non-payment – and that’s just for renovation work. It doesn’t include the existing liens for failure to pay income tax, utilities, or estate tax. Until you know how to check for liens on property, you may run into some trouble when purchasing property with unknown liens.

Table of Contents: 

• What Is a Lien Search
• How To Find Liens on a Property
  • Lien Search on Property
  • Check Records
  • Talk to an Agent
• Buying Property With Liens

What Is a Lien Search

A lien search uncovers any liens on a property and typically occurs during the selling process. If you purchase a property with liens, it then becomes your responsibility to remove the liens from the title – often by paying the outstanding fees. This is why it’s critical to understand any such nuances associated with your properties of interest.

There are four main categories of liens that are used to further describe the multiple types of liens. These categories include general, specific, voluntary, and involuntary.

• General: These liens apply to all of the assets owned by the debtor, including their home, investment properties, bank accounts, and more. 
  
  
• Specific: Specific liens only apply to one asset, so if the payments on an investment property default, the lender can place a lien on the investment property, but none of the debtor’s other assets. 
  
  
• Voluntary: Property owners are able to accept or reject such liens. 
  
  
• Involuntary (or adverse): A lien is placed against the property owner’s wishes. More liens are involuntary than voluntary. 

Types of liens include: 

• Judgment lien: General lien that can be voluntary or involuntary and is utilized when a debtor fails to repay their debt. 
  
  
• Mortgage lien: Specific and voluntary lien issued when debt is accepted to purchase a property. 
  
  
• Mechanic’s lien: Specific and involuntary lien placed on a property when the owner fails to pay for remodeling or renovation work. 
  
  
• Municipal utility lien: Specific and involuntary lien issued when a property owner fails to make utility payments for things like water and electricity. 

• Attachment lien: Specific and involuntary lien that prevents the owner(s) from selling the property during a legal proceeding, such as a divorce.
   
• Federal tax lien: General and involuntary lien used when a property owner fails to pay income tax or property tax.

How to Find Liens on a Property

There are a few different ways to find liens on a property. The method you choose will depend on convenience and time. However, property ownership is on public county records, so checking multiple places may not be necessary unless you believe there may be an error on a particular record.