How to Clear Title With Liens from Previous Owner - Company No Longer in Existence My question involves real estate located in the State of Rhode Island: I was divorced in 2006 and part of my divorce agreement was my husband would pay off the mortgage (which was in his name only) and I would be the sole owner of our home. Although rare, sometimes title companies overlook liens on a title. Liens Against Current or Prior Owners. What is a homeowners association lien? This is to protect them from any liens that may be on the title under a previous owner of a home. Selling a house for most is already a complex process. I guess, the previous owner has not paid off the lien. Liens, particularly on real estate, are a frequent method used by creditors to collect what they are owed. Both state law and the declaration provide the association with a lien against a non-paying owner’s property for any unpaid fees, which means the association can assert its assessment claim against both the homeowner individually and against the property … I am now in the process of selling it after completely remodeling it and the new title company called me asking for the title insurance because they found a lien from … If I bought a house 1 year ago can someone put a lien on the house against the previous owner? If the previous owner was really responsible for it, the title insurer is going to have to run them down and file a lawsuit, and quite often the previous owner has no assets that they can get at. If you did not purchase title insurance, unpaid property taxes or a roofer who has yet to be paid for work on the house with a lien that wasn't found before closing becomes your responsibility. What happens is this: a contractor takes a job to improve a property and makes a contract with the property owner. Types of Property Liens. Get title insurance when you purchase a home. I purchased a property 5 months ago with the purpose of flipping. Not in my name and after I purchased clean and - Answered by a verified Real Estate Lawyer If … In either case, all liens must be settled before a home sale can happen. Don't let that happen. Property liens are actually pretty easy to understand. Can a lien be placed on a property from a previous owner's debt. There are two types of liens that can be placed against a property. Here are 3 very simple ways to find out if there is a lien on your house - and how to "lien proof" your property. A home's chain of title details its ownership history as well as any liens attached to its title. I purchased a property 5 months ago with the purpose of flipping. When you sell a house with a lien on it, the process becomes even more complex. ... Usually, a property tax lien takes priority over all other mortgages or liens on the property, even if the property tax lien was placed on the property after the other liens. It is uncommon for people to purchase property with a lien on it because property usually cannot be sold until any liens are satisfied. You'll need to file a lien release form in order to sell or transfer your property. Does a lien on a property have to be paid prior to transfer as a gift? As you said, read your policy. What Is a Lien On a House? The owner was the administrator of his deceased parents estate. A voluntary lien is a lien the homeowner agrees to — like a mortgage. Any liens on the property, mortgages, from the previous owner will remain on the property. Show 7 more Show 7 less . When insuring a refinance in most jurisdictions, if a federal tax lien against the current or former owner has attached to the property, the federal tax lien will retain priority over the new lender’s interest. I am now applying to refinance and two liens have surfaced on the property from the previous owners. Answer. This guy told me that if he doesn't get paid, he will place a lien on my property, so it is in my best interest to help him get the money. My in-law recently offered to give my wife her half (56%) of her and her ex-husbands home (my wife's father). But if it hasn't been paid, you'll need to sort this out before your home sale goes through. We closed at the title company and he agreed to do an owner financed contract for the balance. Property liens can be a serious business. How to remove a property lien. It gives creditors a stake in your home and a way to collect debts owed to them. How to check if there’s a lien on your property. A couple weeks ago, while doing research on properties in my neighborhood, I see that a “State Tax Execution” lien was placed on this house in June 2011 in the previous owners name for unpaid income taxes for 2007 for over $8,000. The contractor then performs the work. I told him to contact the previous owner of the house (who has since moved out of state), because I don't know anything about it.