Legal Guide
Liens do not have to kill your sale. Here is how to identify, resolve, and close on a property with outstanding liens.
A lien is a legal claim against your property filed by a creditor. It attaches to the title and must be resolved before the property can transfer to a new owner with clear title. In Florida, liens are recorded with the county Clerk of Court and show up during a title search.
Having a lien on your property does not mean you cannot sell. It means the lien must be satisfied - either paid in full, negotiated down, or otherwise resolved - before or at closing. Thousands of Florida homes sell every year with one or more liens attached. The key is understanding what you owe, to whom, and what your options are.
If your total liens exceed your home's equity, you may be in a short sale situation, which requires lender approval and a different process. If your equity exceeds the lien amounts, the liens are simply paid from your closing proceeds.
Property Tax Liens. When property taxes go unpaid, the county places a tax lien on the property. In Florida, property taxes become delinquent on April 1 of the following year. Tax liens take priority over almost all other liens except federal tax liens in certain situations. The county may sell tax lien certificates to investors, who then earn interest on the unpaid amount. After two years, a tax certificate holder can apply for a tax deed, potentially forcing a sale of your property.
Mechanic's Liens (Construction Liens). Under Florida Statute 713, contractors, subcontractors, and material suppliers who are not paid for work performed on your property can file a construction lien. These liens must be filed within 90 days of the last work performed. Mechanic's liens are common in renovation projects where the homeowner and contractor have a payment dispute. They can be challenged if proper notice requirements were not followed.
HOA and Condo Association Liens. Homeowner associations and condo associations in Florida can place a lien on your property for unpaid assessments, fines, and legal fees. Under Florida Statute 720 (HOAs) and 718 (condos), association liens have "super-lien" status - meaning up to 12 months of unpaid assessments take priority over a first mortgage in certain situations. This makes HOA liens particularly consequential.
Judgment Liens. When someone wins a lawsuit against you and obtains a money judgment, they can record it as a lien against your real property. In Florida, a recorded judgment lien is valid for 10 years (and can be renewed for another 10). Judgment liens can result from personal injury lawsuits, breach of contract claims, credit card debt collections, or any other civil litigation.
IRS and Federal Tax Liens. The IRS can file a federal tax lien when you have unpaid federal taxes. These liens attach to all your property, including real estate, and are filed with the county recorder. IRS liens are among the most complex to resolve because they involve federal law and IRS procedures. However, the IRS does have programs for lien subordination and discharge that can allow a sale to proceed.
Mortgage Liens. Your mortgage is itself a lien. Most sellers have at least one mortgage lien that gets paid off at closing. Second mortgages, home equity lines of credit (HELOCs), and reverse mortgages are all additional mortgage liens that must be satisfied.
Before listing your home or accepting an offer, you should know exactly what liens exist against your property. There are several ways to find out:
We strongly recommend getting a preliminary title search before marketing your property. Discovering a surprise lien during closing causes delays, and delays kill deals.
The standard process for handling liens in a Florida real estate closing is straightforward: the title company or closing attorney calculates all lien payoff amounts and deducts them from the seller's proceeds before distributing funds.
Here is how it typically works:
This process works smoothly when the total liens are less than the sale price minus buyer costs. If liens exceed available proceeds, you need either additional funds from the seller (cash to close) or a negotiated reduction from the lienholder.
Many lienholders will accept less than the full amount owed, particularly when the alternative is foreclosure proceedings where they might recover even less. Here are strategies by lien type:
An experienced real estate attorney can negotiate lien reductions on your behalf. The cost of legal representation ($500-$2,000) is typically far less than the savings achieved through successful negotiation.
Cash buyers like OneCashOffer regularly purchase properties with liens. In fact, properties with complex lien situations are one of the most common reasons homeowners seek cash offers rather than listing on the MLS.
Why cash buyers handle liens more easily:
If you have liens on your Florida property and want to understand your options, getting a cash offer gives you a baseline number to work with. You will know exactly what you would net after all liens are paid.
Yes. Liens are paid from the sale proceeds at closing. The title company deducts lien payoff amounts before distributing funds to the seller. If liens exceed equity, you may need to bring cash to closing or negotiate reductions.
Order a title search through a title company or real estate attorney ($150-$300). You can also check your county Clerk of Court online records and request an HOA estoppel letter for association-related liens.
It depends on the type. Judgment liens last 10 years and are renewable. Construction liens must be enforced within one year of recording or they expire. Tax liens do not expire and accrue interest until paid. IRS liens last 10 years from the assessment date.