House Sold With a Lien: Can I Sue?

 A lien on a property can create significant problems. Because of the scale of personal investment involved, issues regarding the financial aspect of homeownership can be unnerving. This is especially true for any potential restrictive liens.

Discovering a lien on your property can be devastating. It is essential to understand liens, how they work, and your options to resolve any issues that arise.

This article outlines your legal options if you unknowingly buy a real estate property with a lien. You can also consult a real estate attorney for legal advice specific to your situation. An attorney can investigate whether the lien should have been discovered during the title search. They can also determine if you have grounds to sue the title company or seller for failing to disclose it.

Can You Sue if Your House Had a Lien on It When You Purchased It?

Generally, a title search will determine whether a property has a lien on it. It is uncommon for people to purchase property with a lien on it because property usually cannot be sold until any liens are satisfied. But liens in the name of previous owners can sometimes go unnoticed in a deed.

These situations become complicated quickly, and navigating this type of legal territory alone can be challenging. If you are having issues with liens on your property, a real estate attorney in your area can help. 

What Is a Lien?

A creditor is someone who has not been paid and may want to collect money from the debtor by claiming a share of something of value that the debtor owns. If someone is unable to pay their debts, that claim on the debtor's property may become a lien. If a lien is placed on the property, the creditor may get reimbursed if the property is sold.

Liens can be placed on all kinds of property. But they are usually placed on the most valuable items a debtor owns, like real estate, vehicles, or boats. This is because this type of property will usually cover or significantly contribute to the amount owed.

What Does a Lien Do

Once filed, a lien limits the property owner's ability to transfer ownership of the property's title. The lien must be satisfied before the lien property is sold. There are different types of liens. Some of the common types of liens include:

• Judgment lien
• Mechanic's lien
• Involuntary lien
• General lien

Who Can Put a Lien on Your House?

Just as there are many types of liens, there are many types of people and institutions that can put a lien on your property. To understand who can put a lien on your property, you should be aware of both voluntary and involuntary liens.

If you have taken out a mortgage, the creditor may have put a lien on your house as collateral. This mortgage lien is a voluntary lien into which the debtor has knowingly entered.

If you have failed to pay for work you have had done on your property, the contractor you hired could put a lien on your property to pay for their labor and materials. If you have not paid taxes, the government may put on lien on your property to cover those unpaid taxes. These are both examples of involuntary liens.

Concerned About a Lien? Get Legal Advice

Finding out there is a lien on your property after purchase can be unnerving at best. But you have legal options. You may have legal grounds to sue, especially if the lien should have been uncovered during the title search or was not disclosed by the seller.

A real estate attorney in your area can help protect your rights and financial investment. A skilled lawyer can:

• Review your purchase documents
• Investigate who is responsible
• Help you pursue compensation from the seller, title company, or other liable parties