example, a spouse may file a lien against his or her interest in commonly held real estate to secure payment of attorney fees accrued in the action. The lien affects only the filing spouse’s interest in the property. Please check your individual state and municipal laws or a local attorney for guidance. • Condominium Association Liens. Condominium liens are strong tools granted by statute to condominium associations to ensure unit owners pay their assessments for common expenses in a timely manner. They vary by state. Consult with a local attorney for more information.
HOW A LIEN AFFECTS YOUR PROPERTY
A seller needs a clear title to undertake a property transaction, including sale and financing. A lien charged to your home makes the title unclear. While under contract for sale, the title company will perform a search for liens that may have been filed against the property. Where a lien is discovered, the transaction is put on hold. A lender will not finance a property until the lien is satisfied, or paid off, which is the seller’s responsibility. In most cases, the seller will act swiftly to resolve the debt. However, the seller could refuse to pay or contest the lien. If this happens, the sale will await a definitive outcome.
The buyer has two options if a seller refuses to pay the lien.
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