What a lien does to a sale
A lien is a legal claim that stays attached to the house even if the owner changes. A buyer's lender and title insurer will not close on a house with a lien they do not agree to. So liens have to be paid, released, or dealt with in the purchase and sale agreement.
The state's outline of a Massachusetts purchase and sale agreement includes sections on the deed and title, on an extension to fix title problems, and a clause called "use of money to clear title," which lets your sale money pay off liens at closing. See the state P&S outline and our purchase and sale agreement guide.
Liens you may find on a Massachusetts house
| Lien | Law | How it is created | How it is cleared |
|---|---|---|---|
| Mortgage or home equity loan | MGL c.183 s.54 to 55 | Recorded mortgage | Payoff at closing, then recorded discharge within 45 days |
| Municipal property tax | MGL c.60 s.37 | Taxes become a lien on land from January 1 of the year assessed | Pay the taxes; get a municipal lien certificate; see the MLC guide |
| Federal tax lien | IRS, Publication 783 | IRS files a notice after unpaid tax | Pay in full, or get a Certificate of Discharge (Form 14135) |
| Mechanic's lien (builders, suppliers) | MGL c.254 | Recorded notice of contract | Pay the contractor; lien is dissolved or released |
| Condo common-expense lien | MGL c.183A s.6 | Unpaid fees; attaches automatically | Pay the balance; the association's recorded statement discharges it |
| Attachment or execution (judgment creditors) | MGL c.223 and c.236 | Creditor records an attachment or execution | Pay, or get a release or satisfaction of judgment |
| Child support lien | MGL c.119A s.6 | Unpaid support; perfected by recorded notice | Pay arrears or get a release or waiver from DOR |
Tax liens: municipal and federal
Municipal. Under MGL c.60 s.37, real estate taxes (with fees) are a lien on the land from January 1 of the assessment year. Your attorney requests a municipal lien certificate from the town (Melrose, Medford, Saugus and so on all have their own office) that lists unpaid taxes and charges. See the MLC and tax proration guide.
Federal. The IRS says a federal tax lien attaches to all of your assets, including property you buy later. A "discharge" removes the lien from one property so you can sell it. IRS Publication 783 tells you to submit Form 14135 at least 45 days before the date you need the certificate, and covers escrow agreements for the proceeds. To learn what you owe, call 1-800-913-6050. Plan for this early. See also our page on back taxes and tax liens.
Mechanic's liens (contractors and suppliers)
If you hired a contractor, a mechanic's lien can show up after the work. Under MGL c.254 s.2, a person with a written contract with the owner has a lien on the property once a notice of contract is recorded at the registry of deeds. Mass.gov explains the timing: a general contractor must record the notice no later than the earliest of 60 days after a recorded notice of completion, 90 days after a recorded notice of termination, or 90 days after the last labor or materials. Subcontractors have similar deadlines, and a worker with no written contract may have a lien for 30 days of labor in the 90 days before filing.
If you did work recently, ask your attorney early whether anyone could still record a lien and what proof of payment to collect. Keep contracts, invoices and signed payment receipts.
Condo fee liens
Under MGL c.183A s.6, the condominium's organization of unit owners has a lien on a unit for unpaid common expense assessments from the time they are due. Late fees, fines and legal costs can be added. The lien has priority over most others, except earlier-recorded liens, a first mortgage recorded before the delinquency (with a partial priority for up to six months of assessments), and municipal taxes and charges. The association must provide a written statement of unpaid common expenses within ten business days after a written request, for a reasonable fee. When recorded, that statement discharges the unit from any lien for other unpaid sums. See the 6(d) certificate guide.
Judgments, attachments and executions
A court judgment against you does not by itself put a lien on your house. A creditor gets a lien on land by recording an attachment before judgment, or an execution after judgment. Mass.gov notes that recorded executions expire in six years unless brought forward or enforced within that time, and that a certificate from the clerk of the court marked "satisfied in full" is usually how a cloud on title from an old execution is cleared.
If a title search shows a judgment lien, your attorney will ask the creditor for a payoff and a release, then pay it from the sale money. If the amount is disputed, ask your attorney about holding money in escrow at closing.
Child support liens
Under MGL c.119A s.6, unpaid child support is a lien in favor of the person owed from the date each payment was due. It is perfected against real estate when notice of the lien and a deed in the obligor's name are both on file at the registry of deeds. A lien expires 10 years after it is first perfected and can be extended in 10-year steps. The Department of Revenue's child support unit can issue a full or partial release or waiver, which is conclusive evidence that the lien is gone on that property. If you owe support, contact DOR before you list so the payoff is ready for closing.
Homestead protection: what it does and does not do
Massachusetts homestead law (MGL c.188) protects part of the equity in your main home from some creditors. Under the current text of the law, there is an automatic homestead exemption of $125,000 per home, and a declared homestead exemption of $1,000,000 if you record a written declaration. You may still see $500,000 in older articles; the current statute text lists $125,000 and $1,000,000, so check MGL c.188 or ask your attorney.
The protection has exceptions. It does not protect against sales for federal, state and local taxes and assessments, against liens recorded before the homestead was created, against mortgages on the home, against court-ordered support for a spouse, former spouse or minor children, and a few others (MGL c.188 s.3). So a homestead usually will not stop the liens in this guide from being paid at closing.
How liens are found and paid
- Title search. Your attorney or the buyer's title insurer examines the registry of deeds records for your property and your name. Order it as soon as you decide to sell.
- List what is found. Mortgages, tax items, recorded notices, attachments and executions all show up. Ask for copies.
- Request payoffs and releases. Each creditor gives a payoff and agrees to record a release. A mortgage uses the payoff process in selling a house with a mortgage.
- Pay at closing. Your attorney deducts the payoffs from your proceeds. If the proceeds are not enough, the creditors must agree to accept less, or you must bring money. See short sale.
- Confirm recording. Your attorney follows up so each discharge or release is recorded.
General information, not legal advice. Lien law has exceptions and deadlines. Your closing attorney should review your title search.