
All About Liens on Real Estate in South West Michigan
a charge upon real or personal property for the satisfaction of some debt or duty ordinarily arising by operation of law
Merriam-Webster
Liens - Things You Pay When You Sell
If you’re in the market to buy or sell real estate in Southwest Michigan, it’s essential to understand the concept of a lien. A lien is a legal claim or right that a person or entity has over a piece of property. It’s a way to ensure that a debt or obligation is satisfied by attaching it to the property itself. In this blog post, we’ll break down the basics of liens and discuss the different types of liens that can be placed on a property.
Mortgage Liens: A mortgage lien is the most common type of lien on a property. It’s a legal claim placed on a property by a lender who has provided a loan to the property owner. The lender has the right to foreclose on the property if the loan isn’t repaid.
Mechanics Liens: A mechanics lien is typically used by contractors, subcontractors, or suppliers to ensure payment for work done on a property. If the property owner fails to pay for the work, the contractor can place a mechanics lien on the property.
Tax Liens: A tax lien is placed on a property by the government if the property owner fails to pay property taxes. The lien gives the government the right to seize the property and sell it to satisfy the tax debt.
Judgment Liens: A judgment lien is a legal claim placed on a property by a creditor who has won a lawsuit against the property owner. The creditor can place a lien on the property as a way to ensure that the debt is repaid.
HOA Liens: If a homeowner is a member of a homeowners association (HOA), the HOA can place a lien on the property if the homeowner fails to pay their dues or fines. This lien gives the HOA the right to foreclose on the property if the debt is not repaid.
Child Support Liens: If a person owes back child support, a lien can be placed on their property as a way to collect the debt. The lien gives the government the right to seize the property and sell it to satisfy the child support debt.
Medical Liens: If a person receives medical treatment and is unable to pay for it, the medical provider may place a lien on the property as a way to collect the debt.
What Liens Actually Do
Liens can be a complicated subject, but they’re an important part of the real estate transaction process. When a property is sold, any liens on the property must be satisfied before the sale can be completed. The seller is responsible for paying off any outstanding liens at closing, and the buyer must be aware of any liens that may exist on the property.
Liens can also affect the property’s value. If a property has a lot of liens, it may be more difficult to sell, and the value of the property may be lower. It’s essential to know the type and amount of liens on a property before making an offer to purchase.
What to Do to Find them
If you’re interested in purchasing a property, it’s important to know if there are any liens on the property before closing the deal. One way to find out if there are any liens on a property is to check with the government tax assessor’s site. Most counties have an online database of all the properties within their jurisdiction, along with information about any outstanding liens.
To check for liens on a property, you can search the property’s address on the tax assessor’s website. The search results should show any outstanding liens, along with the amount owed and the type of lien. If you find a lien on a property you’re interested in, it’s important to investigate further before making an offer. Liens can significantly impact the value of a property and may affect the seller’s ability to transfer the property to you.
Another way to find out if there are any liens on a property is to ask your real estate agent. Real estate agents are knowledgeable about the local market and can help you navigate the process of buying a property. If you’re concerned about liens on a property, your agent can help you research the property’s history and find out if there are any outstanding debts. They can also work with the seller’s agent to negotiate any liens as part of the purchase agreement. By working with a real estate agent, you can have peace of mind knowing that you’re making an informed decision about the property you’re interested in.
It’s essential to understand that liens can vary depending on the state and local laws. Some states may have different rules for how liens are placed on a property and how they can be enforced. It’s always best to consult with a local real estate attorney if you have questions about liens on a property.