What Is a Lien?
A lien is a legal claim or hold on a property that secures a debt or obligation. When a lien is placed on a property, the lienholder has the right to take legal action to force the sale of the property if the debt is not paid. Liens are recorded in the public records and appear on every title search.
A property can have multiple liens simultaneously. When the property is sold, liens are paid in order of priority, which is generally determined by the date of recording under the Florida Recording Act. First-recorded liens are paid first.
Types of Liens in Florida
- Mortgage liens — Voluntary liens created when the borrower finances the property. The most common type of lien.
- Judgment liens — Created when a court awards a money judgment. The judgment creditor records a certified copy in the county where the debtor owns property. Under Section 55.10, Florida Statutes, judgment liens last 10 years and can be renewed for an additional 10 years.
- Tax liens — Arise from unpaid property taxes. Tax liens have super-priority in Florida, meaning they take precedence over all other liens, including mortgages.
- HOA/Condominium assessment liens — Arise from unpaid homeowners association or condominium assessments under Chapters 720 and 718, Florida Statutes.
- Construction (mechanics) liens — Filed by contractors, subcontractors, and material suppliers who performed work or supplied materials but were not paid. Governed by Chapter 713, Florida Statutes.
- Federal tax liens — Filed by the IRS for unpaid federal taxes.
- Code enforcement liens — Filed by local governments for unpaid code violation fines.
How Liens Affect Real Estate Transactions
Liens must be identified and resolved before the seller can deliver clear title at closing. The title search identifies all recorded liens, and the title company ensures they are paid from the seller's closing proceeds. Any liens remaining after closing would be covered by the buyer's title insurance policy (assuming they were not listed as exceptions).
Related Terms
- Encumbrance — A lien is the most common type of financial encumbrance
- Clear Title — Requires all liens to be satisfied
- Cloud on Title — Disputed liens create clouds
- Satisfaction of Mortgage — Releases a mortgage lien
Barnes Walker Lien Resolution
Barnes Walker Title identifies and resolves liens on every closing, coordinating payoffs with lenders, judgment creditors, and government agencies. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC