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How To Extinguish Property Liens

Updated: May 25, 2023

We've covered what property liens are and why title and municipal lien searches are essential to the home buying process. So what do you do if your title company discovers a lien on your property and it brings your closing to a screeching halt?

escrow officer going over paperwork with client

Typically, the seller pays the lien and the sale continues as usual. However, if you refuse to pay, the buyer can either pay the lien or walk away taking their earnest money deposit with them. Here are ways sellers can rectify property liens for a smoother closing.


Request a payoff letter to satisfy the debt(s). Once you’ve made payment you will need to bring receipt of the payment(s) to your recording jurisdiction’s office to have the lien released. Some creditors may be willing to reach a settlement to lower the amount owed or create a manageable payment plan.


Disputing a lien is possible if you feel you are not at fault for the debt(s). You will have to prove with evidence that it is not valid or does not comply with state requirements to win an appeal and have the lien removed.

Buying a property is less stressful when you work with a team like ours at Willow Bend Title. Being realtor founded with 30 + years of real estate industry experience means we have seen it all and know how to lead you in the right direction when issues like liens arise and prevent you from closing. You are not alone. Contact us today.


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