When you are selling your home or a piece of land that you own, it is important to take into account the lien that you will be required to pay.
This blog will provide answers to some of the most frequently asked questions when it comes to liens and the selling of your home.
What is a lien?
A lien is a type of guarantee to the obligation that you have to paying your creditor the interest of the mortgage.
Will the lien be added to the selling price of my property?
Just like a mortgage or any other type of fee, a lien is yours to pay and does not make any difference to the selling price of your property.
How is a piece of property priced before going on the market?
Your property will be priced competitively at market value. An independent realtor will be able to advise on the market value. It is very unlikely that you will be able to add a lien fee on top of this to make up the costs.
When is a lien paid?
The lien should be paid at closing, at the same time as the mortgage and any other costs.
What other costs need to be paid at closing?
Other costs that will need to be paid at closing, in addition to your mortgage, will include the fees that are owed to your realtor, insurance and taxes. You should set aside around 2 percent of the value of the home for closing costs such as these.
Source: realtor.com, "how are liens handled when a home is sold," accessed Sep. 08, 2017