A lien on property is a legal claim against a piece of personal or real property due to contractual obligations. It is a notice that is attached to a piece of real property by a creditor when money is owed to them by the homeowner. When someone spends money or incurs expenditure on someone else’s behalf, a lien enables them to hold an interest in that property until the owner compensates them for the expenditure. A lien encumbers a property and prevents it from being sold until the lien is removed. There are different types of liens in Texas, including:

• Mortgage Liens: These are voluntary liens levied for the debt accepted to buy a home or other property and are specific to the mortgaged property. The lender can foreclose on your property if you fall behind on your loan payments or break the loan agreement.

• Property Tax Liens: These are legal claims against a property for unpaid property taxes. Every year on January 1st, a tax lien attaches to each taxable property in Texas to ensure payment. Property tax liens only become a problem when they are left unpaid.

• Mechanic’s Liens: These are filed by contractors, subcontractors, or suppliers that never received payment for work they performed or materials they provided on the property. If a mechanic’s lien is placed on real property, it may delay or inhibit the sale of the property until the debt is paid and the lien is removed.

• HOA Liens: Homeowners Associations (HOAs) can place a lien on the property if the owner becomes delinquent in paying the monthly fees or assessments.

• Federal Tax or IRS Liens: These are the U.S. governments legal claim against your property when you dont pay a tax debt.

When a lien is placed on a property, it is typically a public record, and for real estate liens, they are filed with the county records office. When the property is sold, refinanced, or foreclosed, the lien assures that proceeds will be used to pay back the creditor.