What Is a Vendor's Lien?
A vendor's lien is a seller's right to claim against real estate they sold when the buyer has not fully paid the purchase price. If a seller (the "vendor") conveys property but the buyer still owes part of the price, equity may give the seller a lien on the property to secure that unpaid balance — even without a mortgage.
Express vs. Implied Vendor's Liens
- Express vendor's lien — created by language in the deed or a separate agreement reserving a lien for the unpaid price; this is the reliable form
- Implied (equitable) vendor's lien — recognized by courts in equity even without express language, though it is disfavored and harder to enforce against later purchasers
Vendor's Liens in Florida
In modern Florida practice, sellers who finance part of the price almost always use a purchase-money mortgage recorded in the public records, rather than relying on an implied vendor's lien. A recorded mortgage gives clear, enforceable priority, while an unrecorded equitable lien may be defeated by a later good-faith purchaser or lender who had no notice of it. Clear documentation is essential to protect a seller's right to be paid.
Related Terms
- Lien — The secured claim a vendor's lien creates
- Mortgage — The modern tool sellers use instead
- Vendor — The seller who holds the lien
Barnes Walker Real Estate
Barnes Walker's real estate attorneys structure seller financing, purchase-money mortgages, and lien protections for Florida sellers. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC