Glossary Term of the Month: I come across many people who are confused or intimidated by the various products or services or even terms commonly used in a real estate transaction, so I thought it would be helpful to add this section to my newsletter. I hope you find it useful, and if you have any particular terms you would like for me to deep dive into, reach out and let me know, it would be my pleasure.
Lien:
During the title search conducted by a lawyer for a property, a lien is something they will be looking for, for that specific property. In short, a lien is a notice attached to the title of a property that says the owner owes a creditor money. A mortgage is one example of a property lien. Allowing property taxes or utilities go into arrears are two other examples of liens that can be attached to a property.
In order to sell your home and transfer the title to a new homeowner, the owner would need to repay any debts and clear the title of any liens against the property first.