What is a lien on a house?

What a lien means on a home

A lien is a legal claim or interest tied to property. Ohio law defines a lien as a charge against or interest in property that secures payment of a debt or performance of an obligation.

On a house, a lien is one kind of title problem because it can sit against the real estate. That is why a lien matters when a homeowner is trying to sell.

A lien does not always mean the person or agency gets the house right away. The IRS says a lien is not a levy, and that a lien secures the government's interest in property when a tax debt is not paid. Different lien types have different remedies, so the label on the recorded document matters.

Voluntary and involuntary liens

Homeowners often use voluntary lien to mean a lien created because the owner agreed to use the house as security for a debt. A mortgage is the common example.

In Tennessee, lenders use deeds of trust for that loan security. The Tennessee Comptroller says a deed of trust is similar to a mortgage and puts a lien on property so a sale of the property can recover funds for the lender if the borrower does not meet the loan agreement. For more on selling with a loan still on the home, read can you sell a house with a mortgage.

Involuntary lien usually means the claim came from a court process or a statute, not from a new mortgage signed by the owner. Ohio's lien definition includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common law lien, and a statutory lien. Seller language is simpler: some liens are agreed loan liens, and some are court, tax, construction, or association claims.

Common types of liens on a house

The name of the lien tells you where it came from. The same house can have more than one lien, such as a mortgage plus a tax lien or judgment lien. The payoff order and sale effect can change by state and lien type.

• Mortgage or deed of trust: A loan secured by a first lien on the home may be paid off at closing. In Tennessee, lenders use deeds of trust.
• Property tax lien: The CFPB's Closing Disclosure rule gives real estate property tax liens as an example of seller obligations that may be paid at closing.
• Federal tax lien: The IRS says a federal tax lien is the government's legal claim against property when a taxpayer neglects or fails to pay a tax debt. The IRS files a public Notice of Federal Tax Lien to alert creditors.
• State tax lien: The CFPB examples include outstanding liens from state income taxes.
• Judgment lien: The CFPB examples include judgments against the seller reduced to a lien on the property.
• Mechanic's or construction lien: Indiana recorder guidance describes mechanic lien filings for a person who performed labor or furnished materials or machinery.
• HOA lien: Indiana recorder guidance says a homeowners association lien attaches to real estate when the association records a notice of lien in the county recorder's office.

How liens are recorded at the county

Many liens become visible because someone records or files a document in a county office. The office name is not the same in every state. These examples show the county offices and documents named in the sources for Indiana and Tennessee.

Recording does not make every lien the same or give every lien the same priority. It can create a public record or land record entry that creditors may see. The IRS also says it files a public Notice of Federal Tax Lien to alert creditors that the government has a legal right to property.

How lien priority works

Priority is the order in which liens are treated when several claims touch the same house. The rule can depend on the state and the type of lien.

Indiana gives a state specific example for construction related liens. The Indiana recorder guidance says a lender's mortgage has priority over liens created under that chapter that are recorded after the mortgage is recorded. It also says liens created under that chapter relate to the time when the mechanic or other person began labor or furnished materials or machinery.

Deadlines also depend on the lien type and state. Indiana's source says a person seeking a mechanic lien files in the county recorder's office within ninety (90) days after performing labor or furnishing materials or machinery.

How liens are usually handled at closing

Liens are often handled at sale closing through payoff lines. The CFPB Closing Disclosure rule includes the amount of any loan secured by a first lien on the property that will be paid off as part of the real estate closing. It also includes other seller obligations, including lien payoffs, fees, or obligations.

CFPB examples include outstanding liens from federal, state, or local income taxes, real estate property tax liens, judgments against the seller reduced to a lien on the property, and other obligations the seller wants the closing agent to pay from the seller's proceeds.

If your question is how to sell, not just what the lien means, read how to sell a house with a lien. This page defines liens and the common types, rather than repeating that process. Selling to a cash buyer is one option, but the recorded liens still need to be accounted for in the closing or title work.

Frequently asked questions

Sources

Checked against each source on November 3, 2026. This page is general information, not legal or tax advice.

1. Understanding a federal tax lien (Internal Revenue Service)
2. 12 CFR § 1026.38 Closing Disclosure (Consumer Financial Protection Bureau)
3. Ohio Rev. Code 1336.01 (Ohio Laws / Ohio Revised Code)
4. County Recorders Resource Library (Indiana State Board of Accounts / IN.gov)
5. Tennessee Property Assessment Glossary (Tennessee Comptroller of the Treasury)