Quick Answer
When an old lien was never released, the title company must determine whether the lien remains valid and what evidence is required to clear it or insure the title. Options include obtaining a release, proving satisfaction, working through a successor entity, using statutory procedures, or seeking a court order.
Old liens that were never released are one of the most common problems found during a title search. They can be tax liens, judgment liens, mechanic's liens, HOA liens, or other types of recorded claims.
Why Was It Never Released?
There are many reasons. The creditor may have forgotten to record a release. The lien may have been paid but the release was never prepared or recorded. A recording error may have occurred. The creditor may have gone out of business. The lien may have been transferred to another entity that never addressed it. The records may not match properly.
What Does the Title Team Do?
The title examiner investigates whether the underlying debt was satisfied. This involves reviewing payment records, contacting the original creditor if still in business, checking assigned claims, and gathering evidence sufficient to satisfy the title insurer's underwriting requirements. If the lien can be proven satisfied, a release or satisfaction piece may be recorded. Learn what happens when a mortgage was paid but never released.
Can It Be Ignored Because It's Old?
Not automatically. Many liens remain valid and enforceable for years unless they expire under applicable statutes of limitation or are formally released. A title insurer will not ignore an unreleased lien simply because it is old. Evidence of satisfaction or expiration is typically required. Learn about unreleased deeds of trust.
FAQs
How long does a lien stay on title?
Liens remain on the public record until they are released, satisfied, or expire under applicable law. Some liens have statutory expiration periods; others may remain indefinitely if not addressed.
Can a title company close with an old unreleased lien?
In some circumstances, with appropriate underwriting approval, a title company may be willing to insure over an old lien if sufficient evidence of satisfaction or expiration exists. This varies by insurer and circumstances.