The liens we see most often in Georgia

  • Delinquent property taxes, with interest, penalties, and costs
  • HOA and condominium assessment liens, including fines and collection costs
  • Materialman's and mechanic's liens from contractors and suppliers
  • Recorded judgments, child support liens, IRS and state tax liens
  • Municipal liens for nuisance abatement, lot cutting, or demolition
  • Second security deeds, HELOCs, and old security deeds never cancelled of record

Uncancelled security deeds are a recurring problem

Georgia uses a security deed rather than a mortgage, and when a loan is paid the lender is supposed to file a cancellation. Sometimes it never happens. The paid-off security deed keeps showing as an encumbrance until a cancellation is recorded, and obtaining one from a lender that has merged, been acquired, or wound up can take weeks.

It is not an obstacle to selling, but it is one of the more common reasons a Georgia closing date moves. Disclosing it early is what prevents that.

When the liens exceed the value

Occasionally the total owed is more than the property is worth. That does not automatically end a sale; it changes the conversation. Lienholders sometimes accept a reduced payoff to avoid the cost and delay of foreclosing, and a short sale may be possible with the first lienholder's cooperation.

We will tell you honestly when the numbers do not work. It is better to hear that early than after weeks of title work.

Do not wait for a clean title report

Owners sometimes delay contacting a buyer until they have cleared the liens themselves, which is backwards. Clearing liens usually requires money, and the money comes from the sale. Tell us what you know, including the liens you are not sure about, and let the title examination do its job.

The problems that cause real delays are the ones nobody mentioned: an uncancelled security deed, an heirs'-property gap, a demolition order. Known problems are priced in.

Frequently asked questions

Can I sell a house in Georgia that has a lien on it?

Usually yes. Monetary liens are paid from the closing proceeds. It only becomes difficult if the liens exceed the property's value.

Do I have to pay off liens before I sell?

No. That is what closing is for. The closing attorney obtains payoffs and pays them from the proceeds.

What if an old security deed was never cancelled?

The closing attorney chases the cancellation. If the lender no longer exists it can take longer, which is why disclosing it early matters.

Do you buy houses with delinquent Georgia property taxes?

Yes. The tax commissioner's figure is obtained and paid at closing.

What about a pending year's support petition?

It can change who has authority to convey the property, so it needs to be identified before a contract is signed. That is a conversation for a Georgia probate attorney.

This page is general information about selling property in Georgia, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Georgia professional about yours.