Georgia property owners can be susceptible to property liens in some cases. These liens can make it difficult to sell your property or to get additional financing. By understanding the different types of liens that you may be faced with, you can work with your attorney to have them successfully removed.
What is a property lien?
In real estate, a lien on your property simply means that there is a claim on it for an unpaid debt. This claim can come in many different forms. The most common include mechanics’ liens, judgment liens and tax liens. When one or more of these liens is filed against your real property, the lien will come up in a title search. Most financing companies will not finance the purchase of a property that has an existing lien on it. This means that you won’t be able to sell your home until the lien is removed.
The various types of liens
As you just learned, there are three main types of liens that may be filed against your real estate. The first is a mechanic’s lien. One can be successfully filed by a contractor who did work on the property. If you didn’t pay the contractor or their subcontractors according to the agreement, a lien can be placed on your home. The next type is a judgment lien. This sort of lien can be placed against your home for any type of debt that you were found liable for in a court of law. Lastly, a tax lien can be placed against your property in the event that you didn’t pay your county, state or federal taxes.
Liens on real estate can hinder your ability to sell that property or refinance it. If you’ve recently found that there is a lien against your property, it’s time to talk to an attorney about getting it removed.