An outstanding lien on a property can prevent you from selling. If you intend to sell a home with an existing lien, there are some key elements to consider first. You should review the lien with a real estate lawyer to clarify the terms before listing your home.
There are several things to consider when you want to sell a property with a lien.
How will you price the home?
The listing price of the home needs to balance the market value as well as the outstanding lien. Make sure that the existing market will support an asking price that covers the lien and provides you with the return you need. Consider the pricing that the market can bear before you decide.
Is the lien balance low enough to settle?
You must satisfy the balance owed on the lien before you can legally transfer the property deed. Consider the outstanding balance on the lien, the asking price on the property and any additional funds you may have to put toward the lien settlement. Find out how long it will take to clear the lien so that you approach the closing table with a clear deed.
An outstanding lien should not keep you from selling a property. With an understanding of real estate law and deed requirements, you can sell your property without any interference. Pay the lien balance before you close on the sale so that the deed is clear and eligible for transfer. Bring proof of settlement to the closing to ensure that the sale goes through.
