How do you deal with existing liens that a seller has?

How do you deal with existing liens that a seller has?

Member since 2019 · 1 post · 0 votes

I am new to investing but nevertheless... How do you go about buying a property that has liens? Do you just not deal with them? 

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  • Kenosha, WI · Member since 2015 · 89 posts · 81 votes
    7y

    There are many types of liens. Some may be easily corrected, such as a contractors lien that has been satisfied but was never removed from the record. A phone call can clear those up. Other liens, such as bank, tax or HOA liens are very serious and need to be addressed before a seller can deliver marketable title to a buyer.

    You would want to consult a RE attorney, but I guess you could either make your offer contingent on the lien being cleared or buy at an appropriate discount and pay the lien yourself.

    Ignoring a lien against the property is not a solution.

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