Taxes

• Both unpaid federal income tax and defaulted property tax can add liens to a home. In order to sell the property or remove the lien, all of the money must be repaid, including any fees that were incurred by the person holding the lien. If purchasing a property with a property tax lien attached to it, the buyer is responsible for paying the lien and may have to go to court to have the lien removed.
  
  

Mortgage and Homeowners Association

• A mortgage loan is a lien, because the property is collateral for the repayment of the loan. Mortgages are voluntary liens, unlike other liens. The lien is placed against the home for its purchase, home improvement or debt consolidation. If homeowners association dues are not paid, the association is within its rights to place a lien against the property. Before selling property that belongs to a homeowners association, a certificate of HOA fees from an escrow company must be provided. The dues must be current by the time the house transfers ownership.
  
  

Mechanic or Contractor

• Mechanic or contractor's liens occur when someone does work on a home that is left unpaid. The total lien amount includes labor and materials. If a supplier delivers products to a home and is not paid, that supplier can also file for a contractor's lien. Surveyors, engineers and architects can also file liens. If a property with a mechanic's lien is sold, the seller or buyer must pay the lien or the deal will not be approved. If the seller refuses to pay the lien, the buyer must pay it. Obtain lien waivers from every subcontractor, contractor and supplier to avoid mechanic's liens on property.
  
  

Judgment and Divorce

• Judgments are lawsuits where a court places a lien against property for failing to pay debts, including credit card, bank loan or vehicle repossession debts. This judgment can be used to force a sale of property to pay the debt. Divorce liens occur when one party is allowed to reside in the home. If the party that is granted the right to live in the house sells the house, the other party may be entitled to part of the sale price, and the ex-spouse can file a lien against the property so that he receives his share of the profits from the sale. Unpaid child support can also be the cause of a lien against property.