What is a lien and how does it affect my sale?

A lien is a creditor’s recorded claim against a property as security for a debt. Mortgages are the most common, but liens can also come from unpaid property taxes, court judgments, or contractors who weren’t paid (mechanic’s liens). Because a lien travels with the property, it generally has to be satisfied before ownership can transfer free and clear. At closing the title company identifies every lien, arranges payoff (typically from the seller’s sale proceeds), and obtains the releases. Catching and clearing liens is a core reason the title search and escrow process exist.