How to Handle Probate Property Liens

When a loved one passes away and their home enters probate, the process of selling the property can feel overwhelming on its own—but what happens when there’s a lien on the home?

Whether it’s unpaid taxes, a mortgage, or a contractor’s claim, liens can delay or complicate the probate process. But with the right steps, they can be handled with clarity and care.

What Is a Lien?

A lien is a legal claim against the property for an unpaid debt. Common probate property liens include:

• Mortgage loans

• Property tax liens

• Mechanic’s liens (from unpaid work or materials)

• HOA dues or utility bills

• Judgment liens from court rulings

Before the property can be sold or transferred, these debts must be addressed either paid off or negotiated.

Steps to Handle Liens in Probate

1. Open Probate and Get Legal Authority

Before resolving liens, the estate’s personal representative (executor or administrator) must be appointed by the court and receive legal authority to act on the estate’s behalf.

2. Order a Title Search

A title search reveals all recorded liens on the property. This is one of the first things your probate real estate agent or attorney should help you do—so there are no surprises later.

3. Prioritize and Pay

Liens are paid out of the estate (not from the executor’s personal funds). In most cases, liens are cleared:

• At closing (paid from the proceeds of the sale), or

• Earlier, if they prevent listing or transferring the property

Sample Scenario: Meet Brian

Brian was appointed executor of his late aunt’s estate. When preparing to sell her home, the title search revealed two liens: unpaid HOA dues and a contractor’s bill from several years ago. With the help of a probate-certified real estate agent and the estate attorney, Brian contacted both lien holders. The HOA lien was settled at closing, and the contractor agreed to a reduced payoff in exchange for timely resolution.

Because everything was addressed early, the sale closed smoothly—and the family was able to move forward with peace and clarity.

Conclusion

Liens don’t have to derail a probate sale but they do require attention, patience, and a plan. With the right support, you can resolve debts, protect the estate’s value, and honor your loved one’s legacy. If you're facing a probate home with liens, I’m here to help you untangle the details and guide you to the closing table—with care, confidence, and a clear path forward.