Liens that surface late.
Some clear in an afternoon. Some take six weeks. The difference decides whether your closing date survives.
Schedule C of the commitment is where the requirements live, and it is the part of the document most agents skim. When something shows up there, the first question is not how bad it is. The first question is how long it takes to clear, because that is what determines whether you need an amendment to the closing date.
Here is a rough map, sorted by runway.
Usually quick
- A judgment against somebody else with your seller's name. Searches are run by name, so a common name pulls hits belonging to strangers. An affidavit of identity from the seller stating they are not that person typically resolves it. Days, not weeks.
- The existing mortgage. Routine. A payoff statement is ordered and the lien is released after funding.
- Current year property taxes. Prorated at closing as a matter of course.
Depends entirely on how fast someone else moves
Abstracts of judgment
This one confuses people, so it is worth understanding. Under Texas law a judgment lien does not attach to a debtor's homestead. Property Code Section 52.001 excludes property exempt from forced sale, and Section 52.0012 provides an affidavit procedure to release a homestead from an abstracted judgment.
But a lien that does not legally attach still shows up in the search, and it still has to be dealt with before anyone will insure the sale. "It does not attach" and "it is not a problem" are two different statements. Expect proof: a homestead affidavit from the seller, a tax certificate showing the homestead exemption, affidavits from disinterested parties, sometimes an inspection. Getting a partial release from a creditor once homestead is established commonly takes a couple of weeks.
Also worth knowing: an abstracted judgment lasts ten years and can be renewed, and it attaches to non-exempt property the seller owns in that county. If your seller is selling a rental or a lake lot rather than their homestead, the analysis is completely different and the judgment must be paid.
HOA assessments
Dues, special assessments, fines, transfer fees, and sometimes attorney's fees. The delay is rarely the amount. It is waiting on a management company to produce a payoff and a resale certificate. Order these the day you go under contract.
Child support liens
These carry their own statutory treatment and getting a release from the state is not a same day process. If your seller mentions arrears, raise it immediately rather than waiting to see whether it appears on the commitment.
Plan on real runway
Federal tax liens
The IRS operates on its own schedule, and the homestead protections that apply to state law judgment creditors do not work the same way against federal tax liens. If there is enough equity, the lien is paid at closing and released. If there is not, the seller may need a discharge application, and that takes considerably longer than most contracts allow. Discover this early or expect to amend the closing date.
Unreleased liens from years ago
A second lien or a home improvement loan that was paid off a decade ago and never released. The debt is gone, the paperwork never got recorded, and now someone has to locate the Lender, or its successor, or the entity that bought the loan when the original bank failed. Simple in principle and occasionally very slow in practice.
Mechanic's and materialman's liens
The one that catches new construction and recent renovation. A contractor or supplier who was not paid can file after your closing for work performed before it. This is why the title company asks for a bills paid affidavit and lien waivers, and why a seller who says "the deck guy and I are still working it out" has just told you something important.
City and county liens
Weed and mowing liens, demolition liens, code enforcement. Small amounts, municipal processing speed.
How to keep this from wrecking your closing date
- Read Schedule C the day the commitment arrives. Not the week of closing.
- Ask at listing: any judgments, tax debts, child support arrears, unpaid contractors, or HOA disputes? Sellers usually know.
- Confirm whether the property is the seller's homestead. It changes the analysis on judgments entirely.
- Order the HOA payoff and resale certificate immediately.
- On new construction or recent work, ask who was paid and whether anything is in dispute.
- When something needs runway, get the closing date amended early instead of asking for an extension the day before.
What to say to a seller
"The title search turned up something we need to clear before closing. It's common and it's usually fixable, but some of these depend on how quickly another party responds, and that is not something any of us control. Let's get it started today so we're not asking your buyer for an extension later."
Every file is different, and the same lien can be handled differently by underwriters depending on the details. What one company will insure over, another will not. Always consult your escrow officer, who can take the specifics to the underwriter. Title and Lender requirements are separate as well, so clearing one does not mean you have cleared the other.