A lien on your property doesn't have to stop a sale — but it does need to be addressed. Whether you're dealing with an HOA lien, a city municipal lien, an unpaid contractor, or multiple liens stacked on top of each other, selling your home is still very possible. In most cases, the liens get resolved at closing using the sale proceeds. Here's everything you need to know.
What Is a Property Lien?
A lien is a legal claim against your property by someone you owe money to. It attaches to the title and must be resolved before or at the time of sale. There are many types of liens, and each one works a little differently.
HOA Liens
If you've fallen behind on homeowners association dues, assessments, or fines, your HOA can file a lien against your property. In both Texas and Georgia, HOA liens can sometimes lead to foreclosure if left unresolved long enough — making it critical to act. HOA liens are paid off from sale proceeds at closing, just like a mortgage.
City and Municipal Liens
Cities can place liens on properties for unpaid utility bills, code enforcement fines, demolition costs, grass cutting charges, and other municipal services. These are sometimes called "nuisance liens" or "code liens." They must be paid at or before closing. Cash buyers like Royal Groups Realty are experienced in identifying and resolving city liens that sometimes don't even show up in standard title searches.
💡 Municipal liens can be particularly tricky because they're not always recorded in the same place as traditional liens. We work with title companies who know how to find and resolve them. Call us at 469-665-8481.
Contractor and Mechanic's Liens
If a contractor, subcontractor, or supplier did work on your property and wasn't paid, they can file a mechanic's lien. These are common on properties that had renovation work done and the owner ran out of funds. Mechanic's liens must be paid or bonded off before or at closing.
Judgment Liens
Court judgments from lawsuits — whether from a creditor, a former business partner, or a personal injury case — can be recorded as liens against your property. They are paid from sale proceeds at closing.
Multiple Liens — What Happens?
Properties sometimes have several liens stacked on top of each other — a mortgage, back taxes, an HOA lien, and a contractor lien all at once. As long as the total of all liens doesn't exceed the sale price, all liens can be resolved at closing. If the liens exceed the value, negotiations with lienholders may be necessary — something Royal Groups Realty can help navigate.
Why Traditional Buyers Can't Buy Lien-Encumbered Properties
Traditional buyers need mortgage financing, and banks won't lend on properties with unresolved liens — it's too risky for them. Cash buyers step in precisely because we don't need bank approval and can work through title issues that traditional sales can't.
Have Liens on Your Property? We Buy Anyway.
We specialize in properties with HOA liens, city liens, judgment liens, and more. Get a no-obligation cash offer and let us handle the complexity.
Get My Cash Offer →Frequently Asked Questions
Do I need to pay off liens before selling?
No — in most cases liens are paid at closing from the sale proceeds. You don't need money out of pocket before the sale.
What if there are more liens than equity?
This is called being "underwater." Depending on the types of liens, options may include short sales, negotiations with lienholders, or bankruptcy. We can help you evaluate the situation.
How do you find all the liens on a property?
A thorough title search conducted by a title company uncovers recorded liens. We also have processes for identifying unrecorded municipal liens that don't show up in standard searches.
About Royal Groups Realty: We buy houses fast across Texas and Georgia — including properties with liens, financial complications, fire damage, and code violations. 6 years in business, 250+ closings. Call 469-665-8481 or visit royalgroupsrealty.com.