Yes, you can usually sell a house with a lien on it in Washington, but the lien generally has to be paid off or otherwise resolved at or before closing so the buyer receives clear title. Mortgages are the most common lien and are paid from sale proceeds. Other liens, such as judgment liens, contractor (mechanic’s) liens, tax liens, or HOA liens, show up on the preliminary title report and need a plan. If your proceeds will cover them, the closing agent typically pays them from your funds. If not, you’ll need to negotiate or bring cash to closing.
Discovering a lien can feel alarming, but most are routine to resolve when they’re found early. Here’s what to expect.
Our Pierce County home selling guide covers the whole process. This article focuses on liens.
Common types of liens
| Lien type | What it is | How it’s usually handled |
|---|---|---|
| Mortgage or HELOC | Your home loan or line of credit | Paid off from proceeds at closing |
| Judgment lien | A court judgment against the owner | Paid or negotiated at closing |
| Mechanic’s (construction) lien | Claimed by a contractor or supplier for unpaid work | Paid, settled, or released before closing |
| Tax lien | Unpaid property or other taxes | Paid from proceeds |
| HOA lien | Unpaid association dues or assessments | Paid from proceeds |
In Washington, a contractor generally has 90 days after they stop furnishing labor or materials to record a lien claim, under RCW 60.04.091. That’s one reason to pay contractors in full and keep lien releases after recent work.
How liens are found
Early in the transaction, the title company issues a preliminary title commitment listing recorded liens and other issues. Some sellers order a title report before listing to avoid surprises. Our guide to title and escrow in Washington explains how title issues are cleared.
Worried about a lien on your home?
Josh can help you get ahead of title issues, estimate your net proceeds, and coordinate with title and escrow so they don’t delay your sale. Talk through your options.
When proceeds don’t cover the liens
If the sale price won’t cover your mortgage and other liens plus costs, you’ll need a plan before listing. Options may include negotiating a reduced payoff with a lienholder, bringing cash to closing, or, in some cases, a short sale. Our seller net proceeds estimate guide helps you check the numbers. Talk with an attorney about judgment or tax liens.
Steps to take now
- Order or review a preliminary title report early.
- Gather payoff statements for every lien.
- Collect lien releases for any recent contractor work.
- Talk with an attorney about disputed liens.
- Build any payoffs into your net proceeds estimate.
Frequently asked questions
Will a lien stop my sale?
Usually not, if it can be paid or resolved by closing. A lien that can’t be resolved can delay or stop a sale.
Who pays off liens at closing?
Typically the closing agent pays them from the seller’s proceeds, as shown on the settlement statement.
What if I think a lien is invalid?
Talk with a Washington real estate attorney. There are processes to challenge or release improper liens.
Clear title, clear closing
Finding liens early keeps your sale on schedule. Book a complimentary strategy session with Josh Barnard and The Barnard Group.
This article is general information, not legal advice. Consult a Washington real estate attorney about specific liens.
