← Back to Blog December 30, 2025 By Michael Rodriguez Legal Guide ⏱️ 16 min read

Can You Sell a House With a Lien? State-by-State Guide (2025)

Complete guide to selling a house with liens including property tax liens, mechanic's liens, HOA liens, IRS liens, and state-specific requirements.

Yes, you can sell a house with a lien, but the lien must be paid from the sale proceeds at closing. This comprehensive state-by-state guide explains the types of liens, how they affect sales, and the legal requirements in each state.

Types of Liens on Real Estate

1. Property Tax Liens

Unpaid property taxes create a lien that takes priority over most other liens. These must be paid before or at closing.

2. Mechanic's Liens

Contractors, subcontractors, or suppliers who haven't been paid can file mechanic's liens. These must be resolved before closing.

3. HOA Liens

Unpaid homeowners association fees create HOA liens. These are typically paid from sale proceeds.

4. IRS Liens

Federal tax debt creates IRS liens that attach to all property. These have priority and must be addressed.

5. Judgment Liens

Court-ordered debts create judgment liens. These must be satisfied before or at closing.

State-by-State Guide

State	Can Sell With Lien?	When Must Be Paid	Special Requirements
Texas	Yes*	At closing	Title company handles payment
Missouri	Yes*	At closing	Must be satisfied before deed transfer
Oklahoma	Yes*	At closing	Title company coordinates payment
Tennessee	Yes*	At closing	Liens paid from sale proceeds
North Carolina	Yes*	At closing	Must clear before deed transfer
South Carolina	Yes*	At closing	Title insurance required

*Liens must be paid from sale proceeds at closing. You cannot transfer property with unpaid liens.

How to Sell a House With a Lien

Step 1: Identify All Liens

Conduct a title search to identify all liens on the property. This is typically done by a title company.

Step 2: Determine Lien Amounts

Get payoff statements from each lienholder showing the exact amount owed, including interest and fees.

Step 3: Calculate Net Proceeds

Subtract all lien amounts and closing costs from the sale price to determine your net proceeds.

Step 4: Pay Liens at Closing

The title company or escrow agent will pay all liens from the sale proceeds before distributing your net proceeds.

Working With Cash Buyers

Cash buyers often purchase properties with liens because:

They understand the lien resolution process
They work with title companies to handle liens
They can close quickly even with liens
They factor lien costs into their offer

Additional Resources

For more information about property liens and legal requirements, visit these authoritative sources:

Consumer Financial Protection Bureau - Consumer protection and financial information
HUD (Housing and Urban Development) - Government housing programs and information
IRS - Tax Information - Federal tax information and resources

Need to Sell a House With Liens?

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Michael Rodriguez

Real Estate Expert at Home Pros

With over 10 years of experience in the real estate industry, Michael Rodriguez specializes in helping homeowners sell properties quickly and fairly. He has helped over 2,500 homeowners sell their houses for cash and has extensive knowledge of the "we buy houses" industry. param($match) $match -replace 'Samuel', 'Michael' a trusted expert in cash home sales, inherited properties, and distressed property transactions. His data-driven approach and deep market knowledge help homeowners make informed decisions.