Closings glossary
Lien
A claim against property securing payment of a debt. Liens rank by priority, and closing normally means paying or releasing every one ahead of the buyer's interest.
What is a lien on a property?
Quick Answer
The full definition
A claim against property securing payment of a debt. Liens rank by priority, and closing normally means paying or releasing every one ahead of the buyer's interest.
Which related terms should you know?
These are the terms that come up alongside lien in the same file.
- Judgment lien
- A lien created by docketing a money judgment against the owner. It reaches real property in the county of docketing and is a routine payoff item at a closing.
- Mechanic's lien
- A statutory lien securing payment for labor or materials that improved real property. The filing deadlines run from the last date work was performed or materials furnished.
- Encumbrance
- Any interest in the property held by someone other than the owner, whether monetary such as a mortgage or lien, or non-monetary such as an easement or a covenant.
- Payoff letter
- A lender's statement of the amount required to satisfy and release a mortgage on a specific date, with a daily interest figure for any later date.
- Tax search
- The search reporting property tax status, water and sewer balances and municipal charges. Its results drive the tax adjustments shown on the closing statement.
Where does lien come up in a New York City closing?
A Bronx building carries a mortgage, an emergency repair charge from HPD and a water arrears balance, and all three are paid from proceeds at closing.
What else should you read before closing?
Title issues
- Judgment lien against the sellerA docketed money judgment attaches to New York real property the seller owns in that county. Here is how it surfaces, how it clears, and who pays it.
- Unsatisfied mortgage of recordA paid-off mortgage with no recorded satisfaction still reads as a live lien in ACRIS. Here is how it is found, how it is cleared, and who pays for...
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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.