Real Estate Liens | What Should I Know?

Real Estate Liens | What Should I Know?

A lien is defined as a legal claim against a property made by a party to secure a debt. Property owners will wish to have a title that is clean of claims. If you have a lien against your property, it is being used as collateral money that is owed. You will be faced with major complications if you were to try and sell a property with a lien. The majority of buyers will avoid dealing with real estate that is impacted by liens. This is why it is important to consult with experienced New York City real estate attorneys if your property has a lien. Our legal team at Zimmet Law Group, P.C. can effectively defend your rights. We will help you mend the issue at hand. To learn more, continue reading and contact our firm. Here are some questions you may have:

What are the two main categories of real estate liens?

There are two main categories of real estate liens: voluntary and involuntary. A voluntary lien is a contract between a debtor and a creditor. This type of lien is often seen in mortgages. The lender owns the property until the debt is paid.

A voluntary lien is when an outside party holds property as collateral for an outstanding debt. Tax liens, mechanic’s liens, and judgment liens are some of the liens that fall under the category.

What is a tax lien?

Tax liens are typically imposed to collect back taxes. A tax lien can include income taxes, property taxes, or other taxes that are deemed delinquent. This lien is imposed by the government. A tax lien can impact your credit score. This lien can make it very hard to sell your home. You should contact an experienced real estate attorney if you face a tax lien.

Can I sell my home with a lien?

If you are attempting to sell your home and you have an involuntary lien, this will have a major impact on your ability to sell your property. The majority of buyers will expect that the title will be clean before the transfer. One of the many aspects of a real estate transaction is a search for existing liens. It could ruin your chances of selling your home if one comes up for your property. There is no law against buying a property with a lien. However, most buyers will avoid working with you. In some cases, mortgages can be denied.

Contact Our Firm

Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.

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