Property Liens FAQ: Questions New York Homeowners Ask
Hudson River Realtors | Referral Network Serving New York State
What is a property lien?
A property lien is a legal claim placed against your real estate by a creditor, giving them a security interest in your property. The lien must be satisfied before you can transfer clear title to a buyer.
Can I sell my house if it has a lien on it?
Yes. Having a lien does not prevent you from selling, but the lien must be resolved at or before closing — typically from the sale proceeds. If liens exceed your equity, you may need to negotiate reductions or pursue other options.
What is the difference between a tax lien and a judgment lien?
Tax liens arise from unpaid property taxes and have super-priority over all other liens. Judgment liens result from court judgments in civil lawsuits and follow the first-in-time priority rule. Tax liens are harder to negotiate but judgment liens accrue 9% annual interest.
How do I find out if there are liens on my property?
You can search county clerk records (many are online), order a title search from a title company, check with the county tax assessor, search for state tax warrants with the NY Department of Taxation, or have your attorney run a comprehensive lien search.
How long does a judgment lien last in New York?
A judgment lien in New York is valid for 10 years from the date of docketing under CPLR §5203 and can be renewed for additional 10-year periods. It accrues interest at 9% per year.
What is a mechanic's lien?
A mechanic's lien is a claim filed against your property by a contractor, subcontractor, or material supplier who performed work on your home and was not paid. In New York, it must be filed within 4 months of the last work date for owner-occupied single-family homes.
Can a mechanic's lien be removed?
Yes. You can pay the lien, negotiate a settlement, challenge it in court if it was improperly filed, post a bond to discharge it under Lien Law §19, or wait for it to expire (the lienholder must commence foreclosure within one year or the lien lapses).
What happens if I don't pay a tax lien?
If a tax lien remains unpaid, the municipality can sell the lien to a third-party investor or pursue in rem foreclosure to take ownership of your property. New York typically provides a two-year redemption period after a tax lien sale.
Can I negotiate a lien for less than what's owed?
Often yes, especially with judgment liens. Many creditors will accept a reduced lump-sum payment rather than risk getting nothing. Tax liens are less negotiable — municipalities generally require full payment plus interest and penalties.
What is lien priority?
Lien priority determines the order in which liens are paid from sale proceeds. Generally, tax liens come first, then mortgages, then judgment liens in the order they were recorded. Priority matters most when the sale price does not cover all debts.
Does a lien affect my credit?
Judgment liens can appear on your credit report and negatively affect your score. Tax liens were removed from credit reports in 2018 by the three major bureaus, but the underlying unpaid debt may still be reported by the creditor.
Can I refinance with a lien on my property?
It depends on the type and amount. Most lenders will not refinance until all liens are resolved. However, some lenders may subordinate to certain liens or allow them to be paid off from refinance proceeds.