Clouded titles and liens are often confused, but they’re not the same thing.
What Is a Lien?
A lien is a financial claim against a property, such as:
- Unpaid taxes
- Judgments
- Contractor liens
Liens usually can be paid off at closing.
What Is a Clouded Title?
A clouded title involves uncertainty about ownership or the right to sell – not just money owed.
Some liens create a clouded title. Others do not.
Why the Difference Matters
Liens are often easier to resolve than ownership defects. Knowing which issue you’re dealing with determines:
- How long resolution takes
- Whether legal action is required
- Whether a sale can proceed quickly