How to Dispute a Lien on Your Property: Protecting Your Home

Editor's note: This post was originally published July 20, 2022, and has been updated for accuracy, comprehensiveness and freshness on June 23, 2025.
Here’s a big question: Can you fight a lien on your house? Discovering a lien on your property can be overwhelming and stressful. Whether it's due to unpaid contractor work, tax debt, or even a fraudulent claim, liens against property create serious legal and financial complications that demand immediate attention. Understanding how to dispute a lien on your property is crucial for protecting your homeownership rights and preventing devastating consequences like forced property sales.
Property liens create what's legally known as a "cloud" on your title, making it nearly impossible to sell or refinance your home without addressing the issue first. The good news? You have several options for challenging invalid or incorrect liens, from direct negotiation to legal action.
Dan Mantzaris, LegalShield provider lawyer with DeBeaubien, Simmons, Knight, Mantzaris & Neal, LLP (DSK Law Group), has contributed some excellent wisdom to help us understand this complex legal issue. Let’s walk through things you need to know about how to fight a lien on your house, including dispute processes, legal remedies, and when to seek professional help.
What is a property lien?
A property lien is a legal claim against your real estate that serves as security for a debt or obligation. "A lien, by its very operation, can 'attach' to real or personal property and means that the property cannot be transferred without satisfying the underlying debt secured by the lien," explains Mantzaris.
Liens come in two main categories:
- Voluntary liens: Those you agree to, like mortgages
- Involuntary liens: Those placed without your consent, such as tax liens or contractor liens
The key thing to understand is that liens against property give creditors significant power over your real estate, including the potential right to force a sale if the debt isn't satisfied.
Common reasons liens are placed on property
Understanding why liens are filed can help you identify potential issues before they become major problems. Here are the most common scenarios:
Tax and assessment liens
- Federal, state, or local government liens for unpaid taxes
- Property tax liens from your local tax collector
- Special assessment liens for municipal improvements
Contractor and mechanic's liens
- Construction liens from contractors who completed work but weren't paid
- Material supplier liens for building supplies
- Subcontractor liens for specialized work

Court judgment liens
- Civil lawsuit judgments
- Unpaid child support orders
- Criminal court costs and fines
Homeowners association liens
- Unpaid monthly HOA fees
- Special assessment charges
- Maintenance and repair costs
Fraudulent or erroneous liens
Sometimes liens are filed incorrectly due to:
- Billing errors or mistaken identity
- Wrongful lien on property claims
- Fraudulent attempts to cloud your title
"Certain liens such as taxes, assessments, judicial and statutory liens or mortgages are very difficult to successfully dispute," notes Mantzaris. However, contractor liens and fraudulent claims often have more room for challenge.
How to find out if there's a lien on your property
Before you can learn how to get rid of a lien, you need to know if one exists. Here's how to check by doing a title search:
Professional title search
"The most accurate and comprehensive way is to order what is commonly referred to as an 'Owners and encumbrances report' from a licensed title agency," advises Mantzaris. These reports show all recorded liens and typically cost between $200-$750.
County records search
Many counties offer online property record searches through:
- County recorder's office websites
- Property appraiser databases
- Tax collector portals
Warning: Online searches may not reveal all liens, so professional reports are more reliable for complete information.
Signs of potential liens
You might discover liens during:
- Refinancing attempts
- Property sale preparations
- Title insurance applications
- Routine credit checks

Steps to dispute a lien on your property
Whether you want to learn how to fight a construction lien or to dispute any other type of lien, you have several strategic options available.
Gather supporting documentation
Start by collecting evidence that supports your dispute:
- Payment records showing the debt was satisfied
- Contracts detailing work scope and payment terms
- Communication records with the lienholder
- Photos or evidence showing work wasn't completed properly
Direct negotiation with the lienholder
"Negotiation is always an option and may likely be the best option," explains Mantzaris. "Depending on the nature of the lien, a qualified attorney could work to negotiate to reduce the amount to be paid to satisfy the lien."
Contact the lienholder directly to:
- Request detailed proof of the debt
- Discuss payment arrangements
- Negotiate reduced settlement amounts
- Document all communications in writing
Many lienholders prefer negotiation over costly legal battles, making this often the most efficient path for how to get rid of lien on house situations.
Use a lien bond to discharge the lien
For certain types of liens, particularly construction liens and mechanic's liens, you can obtain a lien bond to remove the lien from your property.
"In certain instances, mostly a statutory lien, construction lien or a mechanic’s lien, there is an option to obtain a bond in the full amount of the lien plus all interests cost and attorney fees and replace the lien with the bond," Mantzaris explains.
How lien bonds work:
- You purchase a bond equal to the lien amount plus costs.
- The lien is removed from your property
- The bonding company becomes responsible for the claim
- Your property can be sold or refinanced while the dispute continues.
Considerations for lien bonds:
- Bonding companies evaluate your creditworthiness and assets
- Premium costs vary based on the amount and your financial profile
- You typically need significant assets to qualify.
File a lawsuit to vacate the lien
When negotiation fails or you're dealing with a wrongful lien on property, legal action may be necessary.
"An owner of a property subject to a lien always has the right to challenge or dispute the lien through litigation," states Mantzaris. "Depending on the lien and the laws of a particular state for certain liens, there are detailed steps that a lien holder has to follow for the lien to be valid and enforceable." Somebody who files a lien could incur a penalty for filing a false lien.
Legal grounds for challenging liens include:
- Improper filing procedures or missed deadlines
- Fraudulent claims or false information
- Excessive amounts beyond actual debt
- Work never completed or performed improperly
The lawsuit process typically involves:
- Filing a formal lien contest in court
- Serving notice to the lienholder
- Presenting evidence supporting your dispute
- Obtaining a court order for lien removal
Understanding the penalty for filing a false lien
If you successfully prove a lien was fraudulent or filed in bad faith, you may be entitled to damages. "There are also causes of action in the event that a lien is deemed to be fraudulent in which the property can recover damages included attorney fees if successful," notes Mantzaris.
Potential consequences for false lien filers:
- Monetary damages to the property owner
- Attorney fee reimbursement
- Criminal charges in some jurisdictions
- Civil penalties under state lien laws
When to involve a lawyer
Certain situations absolutely need professional legal assistance for how to stop a lien on your property:
Immediate legal help needed for:
- Multiple liens from different creditors
- Complex construction disputes with several parties
- Fraudulent liens requiring court action
- Property sales being delayed by lien issues
- Foreclosure threats from lienholders
"When that occurs, the owner should contact an attorney immediately, as there are important rights that need to be preserved by timely responding," emphasizes Mantzaris.
How a lawyer helps with lien disputes:
- Review documentation for procedural errors
- Negotiate with lienholders on your behalf
- File court motions and legal challenges
- Protect your rights throughout the process
- Prevent further complications from missed deadlines

How a lien can affect your property sale or refinance
Understanding the impact of liens on real estate transactions is crucial for homeowners.
"Unless the lien is satisfied as part of the sale or refinancing of a property, a lien on a property will delay or prevent the transaction," warns Mantzaris.
Impact on property sales:
- Title companies will identify liens during closing preparation
- Buyers may withdraw offers rather than assume lien debts
- Closing delays while liens are resolved
- Reduced sale prices to account for lien amounts
Impact on refinancing:
- Lenders require clear title for new loans
- Appraisal issues due to title clouds
- Higher interest rates or loan denials
- Additional costs for lien resolution
Proactive steps before selling or refinancing:
- Order a title report 6-8 weeks before listing
- Resolve known liens through payment or dispute
- Gather documentation proving lien satisfaction
- Work with professionals to clear title issues
Financial and legal consequences of not disputing liens
Ignoring liens can lead to severe consequences that every property owner should understand.
"Most properly filed and recorded liens are subject to foreclosure, which means that if they are not satisfied then the holder of the lien can file suit and force the sale of the property to satisfy the lien," explains Mantzaris.
Immediate consequences:
- Inability to sell or refinance your property
- Accruing interest on the lien amount
- Additional fees and costs added to the debt
Long-term consequences:
- Forced property sale through foreclosure
- Loss of home equity beyond the lien amount
- Damage to credit rating from unresolved debts
- Legal fees if the lienholder takes court action
"Additionally, for as long as the owner does not dispute the lien or does not try to resolve it, the lien amount accrues interest and therefore, the amount owed continues to grow," warns Mantzaris.
Alternative dispute resolution options
Sometimes how to get rid of a lien involves creative solutions beyond traditional legal channels.
Escrow arrangements
In some cases, title companies can hold disputed amounts in escrow, allowing property transactions to proceed while negotiations continue.
Mediation services
Professional mediators can help resolve lien disputes without costly litigation, particularly effective for:
- Contractor payment disputes
- HOA fee disagreements
- Property improvement conflicts
Settlement conferences
Court-ordered settlement meetings can facilitate resolution before trial, often resulting in:
- Reduced lien amounts
- Payment plan agreements
- Mutual release of claims
How LegalShield can help with lien disputes
Knowing how to fight a lien on your own can feel impossible. That’s why you don't have to face these challenges alone. LegalShield Members have access to experienced lawyers who can provide essential guidance, including real estate legal advice.
LegalShield real estate legal services include:
- Answers to questions on covered, lien-related issues
- Document review for contracts, liens, and legal notices
- Attorney representation in negotiations and court proceedings at a discount
- Legal letter writing to lienholders and creditors
How LegalShield provider law firms assist with lien disputes:
- Case evaluation to determine the best dispute strategy
- Procedural guidance
- Negotiation support with lienholders at a discount
LegalShield's network of qualified attorneys understands the complexities of real estate law and can provide consultation on how to dispute a lien on your property.
Whether you're dealing with a wrongful lien on property, need help with how to fight a construction lien, or want to understand your rights regarding liens, LegalShield provider attorneys are available to help you know your rights.
If you're currently dealing with a lien dispute, consider signing up with LegalShield today.
_______________________________________________________________________________
Written by Elyse Dillard, Content Specialist at LegalShield. Elyse creates educational resources about legal and identity theft protection services. She works to make complex legal concepts more accessible to readers and has contributed to numerous articles on the LegalShield blog. \
Dan Mantzaris concentrates his practice in the areas of local government, land use and zoning, and general business. Since his admission to The Florida Bar in 1986, Dan has represented clients in matters related to real estate development, corporations, contracts, property rights and eminent domain, civil and commercial litigation, personal injury and casualty defense, personal injury claims, employment discrimination defense and international adoptions.
Pre-Paid Legal Services, Inc. (“PPLSI”) provides this blog as a public service and for general information only. The information made available in this blog is meant to provide general information and is not intended to provide legal advice, render an opinion, or provide a recommendation as to a specific matter. The blog post is not a substitute for competent legal counsel from a licensed professional lawyer in the state or province where your legal issues exist, and you should seek legal counsel for your specific legal matter. All information by authors is accepted in good faith. However, PPLSI makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information. The materials contained herein are not regularly updated and may not reflect the most current legal information. No person should either act or refrain from acting on the basis of anything contained on this website. Nothing on this blog is meant to, or does, create an attorney-client relationship with any reader or user. An attorney-client relationship may be formed only after the execution of an engagement letter with an attorney and after that attorney has confirmed that no conflicts of interest exist. Nothing on this website, or information contained or transmitted by this website, is intended to be an advertisement or solicitation. Information contained in the blog may be provided by authors who could be a third-party paid contributor.
PPLSI provides access to legal services offered by a network of provider law firms to PPLSI members through membership-based participation. Neither PPLSI is not a law firm, and its officers, employees or sales associates do not directly or indirectly provide legal services, representation, or advice.