Property back on market - lien issue?

Question

I am considering putting in an offer on a property that recently got back on the market. The seller's agent said: "reason for back on market is unknown lien was found on property and previous buyer didn't wait to be figured out, ready to move forward now".

1) I'm a complete newbie so this makes me very nervous. Can you please explain what this might mean?

2) What is the best way for me to get to the bottom of this? I am most likely going to have to do it during the option period so want to make sure it will be quick and 100% confidence.

3) What else should I be thinking about / doing?

Sweta Govani · Answer

Very helpful, thank you! Do I need to find a title company if it is an all-cash deal? Is there a 'good' title company?

Kyle Mccaw · Answer

@Sweta Govani

Great questions, Sweta — and smart to dig into this before moving forward.

• What this means: The title company likely found an unpaid debt (like a contractor lien, judgment, or old mortgage) attached to the property. It has to be cleared before the seller can transfer clean title. It’s not uncommon — and usually fixable — but it does create delays.
• How to verify: During the option period, your title company will run a full title commitment report. 


The lien is identified and correctly recorded


There’s a clear path to remove it (e.g., payoff letter, court release)


The title company will issue a clean title policy at closing
• The lien is identified and correctly recorded
• There’s a clear path to remove it (e.g., payoff letter, court release)
• The title company will issue a clean title policy at closing
• If you like the property, don’t let this scare you off — just use the option period to protect yourself


Make sure your contract gives you an easy out if title isn’t cleared during that time
• If you like the property, don’t let this scare you off — just use the option period to protect yourself
• Make sure your contract gives you an easy out if title isn’t cleared during that time

What this means: The title company likely found an unpaid debt (like a contractor lien, judgment, or old mortgage) attached to the property. It has to be cleared before the seller can transfer clean title. It’s not uncommon — and usually fixable — but it does create delays.

How to verify: During the option period, your title company will run a full title commitment report.

• The lien is identified and correctly recorded
• There’s a clear path to remove it (e.g., payoff letter, court release)
• The title company will issue a clean title policy at closing

The lien is identified and correctly recorded

There’s a clear path to remove it (e.g., payoff letter, court release)

The title company will issue a clean title policy at closing

• If you like the property, don’t let this scare you off — just use the option period to protect yourself
• Make sure your contract gives you an easy out if title isn’t cleared during that time

If you like the property, don’t let this scare you off — just use the option period to protect yourself

Make sure your contract gives you an easy out if title isn’t cleared during that time

Bottom line: it sounds like the title company has now figured out the lien. So long as they’re on track to issue clean title, you should be fine. This is exactly what they’re paid to handle.