What Is a Property Lien in New Hampshire and How Does It Affect a Sale?

🏡 What Is a Property Lien in New Hampshire and How Does It Affect a Sale?

When buying or selling a home in Plymouth, Campton, Rumney, Thornton, Wentworth, or anywhere across Central NH, understanding property liens is crucial.

A lien is a legal claim against a property — and it must be resolved before ownership can transfer.

Here’s everything NH homeowners should know.

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What Is a Property Lien?

A lien is a legal financial claim filed against a property to secure payment of a debt.

This means:

✔ The owner cannot transfer a clear title

✔ The debt must be paid or released before closing

✔ The lien holder may force a sale if unpaid

Liens attach to the property, not the person — which is why buyers must always check for them.

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Common Types of Liens in New Hampshire

1. Mortgage Liens

Every financed property has one until the loan is paid off.

2. Tax Liens

Filed for unpaid state or local taxes.

3. Mechanics/Contractor Liens

Filed by contractors for unpaid labor or materials.

4. Judgment Liens

Court rulings for unpaid debts.

5. HOA or Association Liens

For unpaid dues (more common in condos or developments).

6. Child Support Liens

Filed if a homeowner has delinquent court-ordered support payments.

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How Liens Affect NH Buyers and Sellers

Liens can:

✔ Delay the sale

✔ Block financing

✔ Require negotiation or payoff

✔ Increase closing costs

✔ Create legal risks if not resolved

Buyers must be protected against taking on someone else’s debt.

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How Property Liens Are Removed in NH

To clear a lien, the debt must be:

✔ Paid

✔ Settled

✔ Discharged

✔ Released through the court

✔ Negotiated (in some cases)

Then the lien holder files a lien release at the county registry.

Closing attorneys handle this process during title work.

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How Buyers Can Protect Themselves

Before closing, always ensure:

✔ A full title search is performed

✔ Title insurance is purchased

✔ Your attorney reviews any recorded liens

✔ The seller provides proof of payoff

NH’s closing system is designed to keep buyers safe — as long as proper title work is done.

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Q&A

Q: Can I buy a home in NH with an existing lien?

A: Yes, but the lien must be paid off before the deed transfers.

Q: Who pays the lien — buyer or seller?

A: Almost always the seller, unless negotiated differently.

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Keywords

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Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com