A property lien is a notice that is attached to your property and is usually applied by a credit to whom you owe money. This type of lien is a public record and is filed with the county records office or a state agency. A lien on a property is a quite common, as it is a way for a creditor to attempt to collect on an unpaid debt. If there a property lien on your home, it may interfere with the sale of your home.
In New Jersey, homes should be sold with a clear title. When a lien is put on your home it will reflect on the home’s title. As a result, the debt attached to your home will make your property’s title unclear. You should have your title clear before you proceed with the sale of your home. This usually means that you must, eventually, pay off the debt.
In short, yes. Depending on the type of debt, there may be different liens that can be placed on your home. The three most common liens are a mechanic’s lien, a judgment lien, or a tax lien. These liens can be explained as follows:
Mechanic’s Lien: This type of lien is usually filed by a general contractor, plumber painter, or other type of company that does work on your home. These contractors may file a lien on the property to make sure they are paid.
Judgment Lien: A judgment lien is usually placed on a home when there was a judgment filed against you in a court case. A plaintiff can place a lien against your home until your payment to them is collected
Tax lien: A tax lien can be placed on your home when you do not pay state, federal, or county taxes.
If you are considering selling your home, contact an experienced attorney to help you have a seamless process.
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.