Can Late Discovered Title Liens Be Fixed Before Commercial Closing? 

10/12/2026 10:23 AM       Mark Goodman

Title problems are one of the most common issues that delay closings or cause deals to fall apart completely, and it can be very stressful to learn from your title services team that a lien was found on the property in the days or weeks before closing. Will the discovery of this lien cause your closing to be delayed, or can they be addressed quickly and keep everything on track? We explore what liens discovered shortly before closing can mean for your commercial acquisition. 

Liens are legal claims placed on an asset to secure the repayment of a debt or obligation, and they can come in many forms. You can have tax liens assessed against your property for missed tax payments at the state and federal level, there may be mechanics’ liens from work you had completed on the property that you haven’t paid in full, and there could be assessments against the property for utility bills or Homeowner’s Association violations, and these are just a few of the different liens that could be assessed against the property. 

As a buyer, you didn’t incur these liens, but you can be forced to settle them if you purchase a property that doesn’t get them resolved prior to closing, which is why the discovery of these liens is essential. But will the discovery of a lien delay closing or cause the sale to fall through? Perhaps not surprisingly, the answer is - it depends. 

Whether or not the lien causes problems for closing will depend on a number of different factors, mainly when they are discovered, the amount of the lien and the seller’s willingness to resolve it. Some of these factors are out of your control. For example, if the sellers believe that a lien has been misrecorded or they wish to contest its assessment, it can take weeks or months for them to challenge the validity of the lien through the proper channels. In these instances, liens will almost assuredly delay closing. You should never close on a property on the assumption that the seller will take care of the lien after closing, because if they don’t, you may inherit the debt. Many financial institutions providing a loan will not even let you close if liens are present, so even if you tried to go this problematic route, your financing may not allow it.

So how can these liens be resolved in advance of closing and keep the sale on track? As a buyer, the best thing you can do to try and prevent liens from causing problems for closing is to connect with a title services team early in the process. The sooner you bring them into the fold and they begin investigating a property, the sooner these liens are discovered, in turn giving the buyer more time to settle the matter ahead of closing. 

Not surprisingly, smaller liens are less likely to cause problems for closing, as they can be paid out of pocket by the seller ahead of time or contractually written to be settled with proceeds from the sale. Again, working with a third party title services team can ensure proceeds are directed to the correct parties and any lien recipients as dictated by the contract. This ensures that a buyer doesn’t run off with a payment earmarked for someone else. 

Don’t take on someone else’s debt, and don’t fall for promises to pay without getting a title services team involved to ensure the matter is settled at closing. Contested liens will likely delay closing or cause it to fall through, and that’s something you need to have on your radar during a commercial acquisition. As much as you like the property, it’s not worth taking a major financial hit because of someone else’s unpaid debts. 

To ensure liens are discovered and rectified as quickly as possible, turn to a team of title service professionals. For assistance with your first or your next commercial acquisition, connect with the team at Commercial Partners today at (612) 337-2470.