Types of Property Liens That Affect Home Sales in Texas
Liens That Can Affect Selling a House in Texas
If you're preparing to sell a house in Texas, discovering that there’s a lien on the property can be a major setback. Property liens don’t automatically stop a sale—but they must be resolved before closing. Whether it’s a tax lien, contractor lien, or court judgment, these claims can delay or derail your sale unless handled properly.
In this article, we’ll explain the most common types of property liens in Texas, how they affect real estate sales, and what to do if you're trying to sell a house with a lien on it.
What Is a Property Lien in Texas?
A property lien is a legal claim against real estate used as collateral to secure payment of a debt. When a lien is filed, it becomes part of the public record and can limit your ability to transfer clear title to a buyer. In Texas, liens must be addressed—by paying them off, settling the amount, or negotiating—before or during closing.
Wondering what kind of liens can stop a home sale in Texas? The answer is: nearly all of them, unless they are cleared or satisfied through the transaction.
1. Tax Liens in Texas
What Is a Tax Lien?
Tax lien are placed on your property when you fail to pay property taxes or federal income taxes. In Texas, your county tax assessor-collector can file a lien for unpaid property taxes. The IRS may also place a federal tax lien for unpaid income taxes.
How a Tax Lien Affects Selling a House in Texas
Tax liens must be resolved before title can transfer.
Title companies will not allow closing unless the lien is cleared or a formal repayment plan is in place.
In most cases, the tax lien is paid at closing using proceeds from the sale.
2. HOA Liens in Texas
What Is an HOA Lien?
If your home is part of a homeowners association and you’ve fallen behind on dues, fines, or assessments, the HOA can file a lien against your home. Texas HOAs have significant authority to place and enforce liens on member properties.
How an HOA Lien Affects a Home Sale in Texas
Unpaid HOA fees can create a lien that blocks a clean title transfer.
Some HOAs in Texas even have the right to foreclose on the home.
Most title companies require written proof that all HOA balances are paid before approving closing.
3. Mechanic’s Liens (Contractor Liens) in Texas
What Is a Mechanic’s Lien?
Mechanic’s lien—also called a contractor lien—can be filed by contractors, subcontractors, or suppliers who performed work on your property and didn’t receive full payment. These liens are common after home renovations, roofing, or major repairs.
How a Mechanic’s Lien Impacts a Texas Home Sale
Mechanic’s liens cloud the title and must be resolved before closing.
Title companies in Texas won’t proceed with closing until the lien is cleared.
You may need to pay off the contractor or negotiate a settlement before selling.
4. Judgment Liens in Texas
What Is a Judgment Lien?
Judgment liens are placed on your property after a court rules that you owe money to a creditor. This type of lien often results from unpaid credit card debt, personal loans, or lawsuits. In Texas, judgment liens can affect both residential and investment properties.
How a Judgment Lien Affects Selling Your Home
Judgment liens stay attached to the property until paid off or legally released.
Even if you file for bankruptcy, some judgment liens may remain enforceable.
Texas offers homestead protections, but enforcement rules can be complex.
Other Less Common Types of Liens That May Delay a Sale
While tax, judgment, contractor, and HOA liens are the most common, sellers in Texas may also encounter:
Child support liens – Filed by the Attorney General's office
Federal tax liens – From unpaid IRS debts
Municipal liens – For unpaid water, sewer, or code enforcement fines
Abstracts of judgment – Recorded against property after court decisions
Each of these can prevent a home from being sold unless addressed directly.
Can You Sell a House with a Lien on It in Texas?
Yes, but it requires extra steps. To sell a house with a lien in Texas, you’ll need to:
Identify any liens via a title search or public records
Negotiate or pay off the lien before or during closing
Disclose the lien to potential buyers if listing on the market
Or sell directly to a cash buyer in Texas who buys homes with liens, like TX Home Buying Pros
Final Thoughts: Understand Liens Before You Sell
Understanding the types of liens on property in Texas is essential if you want to avoid closing delays, canceled contracts, or last-minute legal issues. Whether it’s a property tax lien, mechanic’s lien, judgment lien, or HOA lien, each one must be properly addressed before your home sale can close.
If you're dealing with a lien and looking for a faster way to sell, consider working with a local cash buyer who understands how to navigate lien situations in Texas.
Get a Cash Offer for Your Texas Property—Even with a Lien
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