You often don’t need a cash buyer. Alex Silva, a Florida broker, compares what’s owed with what your home can sell for.
How liens get paid when you sell
- A title search finds the liens.It checks recorded liens and often open code cases, so start early.
- Amounts are confirmed in writing.Lienholders send payoff letters. An HOA or condo association sends an estoppel certificate listing what’s owed.
- Liens are paid at closing.The closing agent pays each one from your proceeds and records the releases.
Common Florida liens and how each is cleared
Property tax liens
- If property taxes go unpaid, the county sells a tax certificate, not your home. You can usually redeem it through the tax collector, with interest and fees, until a tax deed is issued.
- The certificate holder can apply for a tax deed starting 2 years after April 1 of the year it was sold, which can lead to a public sale.
HOA and code liens
- Unpaid HOA or condo dues can become a lien. It’s paid at closing, since a new owner shares liability for them.
- Code fines usually grow daily until the violation is fixed, and the lien is paid at closing. You can usually still sell as-is.
- If a code case awaits a hearing, give the buyer the case papers and written notice of the case, including their duty to fix it, before closing. Then notify the code office within 5 days after closing.
Judgment and contractor liens
- A judgment lien is usually paid from your proceeds, but it generally isn’t valid against your homestead (the home you live in).
- A contractor’s lien can be paid, contested, or moved to a bond or cash deposit with the court clerk.
Alex isn’t an attorney, CPA, or title company. Ask your title company or a Florida attorney about your liens.
When liens add up to more than the home is worth
If your liens exceed the sale price minus closing costs, you pay the difference at closing or ask lienholders to take less. They don’t have to agree.
If the sale can’t pay off your mortgage, it’s a short sale, Alex’s specialty. Get each agreement in writing, including whether you’ll owe the rest, and have an attorney review it. Ask a CPA about taxes on forgiven debt.
Behind on payments? Talk to a HUD-approved housing counselor. Considering bankruptcy? See a bankruptcy attorney before you list.
Alex Silva, broker
Voyance Real Estate is led by its broker and owner, Alex D. Silva, who has more than 30 years in real estate and holds Florida broker license BK3153327.
Short-sale negotiation is his specialty: lender approvals, second liens, and valuation disputes.
He works with homes, condos, rentals, and commercial property across Central and South Florida, in English, Spanish, and Portuguese.
Lien questions
Will a lien delay my closing?
It can. An HOA or condo association has up to 10 business days to send an estoppel certificate.
Can a code enforcement lien be reduced before I sell?
Sometimes. Many cities and counties accept reduction requests, usually once the violation is fixed. Ask the city or county before you pay in full.
What if the IRS has a lien on my home?
If the sale covers it, it’s paid at closing and released within 30 days. If not, the IRS may release just this home with a certificate of discharge. Apply on Form 14135 at least 45 days before closing. You’ll still owe the rest. Ask a CPA or tax attorney.
Sources: IRS on tax liens, IRS Pub 783 · Florida law: HOA liens, HOA estoppel, condo liens, tax certificates, tax deeds, code fines, code case disclosure · Find a housing counselor
General real estate information, not legal, tax, or financial advice.
Selling a home with a lien?
Tell Alex which liens you know about, roughly what’s owed, and your timeline.