The liens we see most often in Texas

  • Delinquent property taxes, with penalty, interest, and collection attorney fees
  • HOA and condominium assessment liens, including fines and collection costs
  • Mechanic's and materialman's liens from contractors and suppliers
  • Abstracts of judgment, child support liens, IRS and state tax liens
  • Municipal liens for mowing, nuisance abatement, or demolition
  • Second mortgages, HELOCs, and old liens that were paid but never released

Homestead protection helps, and creates paperwork

Texas homestead law keeps most general creditors' judgments from becoming enforceable liens against a homestead. That protects owners, but a recorded abstract of judgment still shows up in the search, so the title company needs evidence of homestead status to insure around it.

Homestead law also means a spouse generally has to join in conveying homestead property even when only one name is on the deed. A missing spousal signature in a prior deed — often after a divorce handled without a recorded deed — is a recurring Texas title problem.

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 usually backwards. Clearing liens typically 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 search do its job.

The problems that cause real delays are the ones nobody mentioned: a lien release that has to be chased from a lender that no longer exists, an heirship gap, a demolition order. Known problems are priced in.

Frequently asked questions

Can I sell a house in Texas 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 title company obtains payoffs and pays them from the proceeds.

Do judgment liens attach to a Texas homestead?

Generally no. Texas homestead protection blocks most general creditors' judgment liens, though the title company will want proof of homestead status.

What if a lien was paid but never released?

The title company chases the release. If the lienholder no longer exists, it can take longer, which is why disclosing it early matters.

Do you buy houses with delinquent property taxes?

Yes. A tax certificate shows the full amount owed and it is paid at closing.

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