How does a lien impact the sale of a property?

A lien is a legal claim against a property that serves as security for a debt or obligation. When a property with an existing lien is put up for sale, the lien encumbers the property, meaning that the property cannot be sold without addressing the lien. Therefore, before a sale can occur, the lien must be discharged or satisfied. This process typically involves the seller paying off the debt or negotiating with the lienholder to remove the claim, thereby allowing for a clear title to be transferred to the buyer.

Without this step, the buyer would be taking on the lien along with the property, which can lead to complications and legal issues. This requirement ensures that both parties have a clear understanding of ownership and any obligations tied to the property, making it essential for a successful real estate transaction.