What to Know About Real Estate Liens in Georgia

Understanding real estate liens in Georgia is essential for homeowners, buyers, and investors. A lien is a legal claim against a property that can affect ownership and financial responsibilities. In Georgia, various types of liens may arise, each with distinct implications.

One of the most common types of liens is a mortgage lien, which secures the lender’s interest in the property. When a homeowner takes out a mortgage, the lender places a lien on the property as collateral. If the homeowner fails to make payments, the lender can initiate foreclosure proceedings to recover their investment.

Another significant type of lien is a property tax lien. In Georgia, if property taxes remain unpaid, the local government can place a lien on the property. This type of lien takes precedence over other liens, meaning that property tax obligations must be settled before any other claims. Failure to pay property taxes can result in the sale of the property to satisfy the tax debt.

Mechanics' liens are also prevalent in the state. These liens arise when contractors or suppliers are not paid for work done or materials provided to improve a property. In Georgia, contractors must follow specific procedures, including filing a lien claim within 90 days of completing work, to enforce their mechanics' liens.

Judgment liens can occur when a court awards a creditor a judgment against a property owner. This type of lien can be filed against a property as a means of securing the debt owed to the creditor. In Georgia, a judgment lien can remain on the property for seven years unless renewed.

When it comes to removing liens in Georgia, the process differs based on the lien type. Homeowners can resolve mortgage liens by paying off the loan. For property tax liens, settling unpaid taxes will result in the lien being removed. Mechanics' liens may require negotiations with the contractor or legal action to clear, while judgment liens must be addressed through settlement or satisfaction of the debt.

A critical point to understand about liens is that they can significantly impact real estate transactions. Buyers should conduct a title search before purchasing a property to uncover any existing liens. This step ensures they are not inheriting unwanted debts linked to the property.

Finally, working with a qualified real estate attorney can provide clarity and guidance regarding liens. Professionals can help navigate the complexities of Georgia law, ensuring that buyers and sellers understand their rights and obligations.

In conclusion, real estate liens in Georgia play a crucial role in property ownership and transactions. Understanding the different types of liens, their implications, and the processes involved in resolving them is vital for anyone involved in the Georgia real estate market.