Environmental Liens Can Make For Huge Title Headaches 

09/08/2026 09:53 AM       Mark Goodman

Liens associated with a commercial property can cause all sorts of problems when it comes to transferring ownership and a clean title, but oftentimes people only focus on some of the more obvious types of liens. Unpaid mortgages, tax liens or mechanic’s liens linked to contractors who haven’t been paid for their work are some of the most common liens that delay a commercial transaction, but it’s another type of lien that is oftentimes overlooked that can cause huge problems if you’re not careful. We’re talking about the environmental lien.

An environmental lien is a lien placed against a property to secure remediation for damage or cleanup of environmental pollution caused by a business or a property owner. These liens can be levied at the state or federal level, and it can be confusing to ensure your commercial property is acting within all regulations imposed at different levels of government. Some common examples of actions that could trigger an environmental lien include: 

• A state agency finding groundwater contamination tied to improper hazardous waste disposal. 

• Leaking storage tanks contaminating the soil and requiring remediation. 

• Chemicals sprayed on farm crops to deter animal damage are later discovered to have harmful effects on the soil. 

Environmental liens can be such a headache for prospective property owners for a few different reasons. For starters, they are often invisible on many basic title searchers. A more comprehensive title search can reveal the existence of environmental liens, but only if they have been discovered and recorded. In many instances, environmental liens are not known at the time of a sale, and are discovered during the important due diligence stage of a transaction - after an offer has been accepted but before closing.

It’s important to work with a title company that understands the importance of clear communication between parties conducting investigations during the due diligence stage. Oftentimes standard title due diligence and environmental due diligence are run by different agencies, and environmental risks aren’t always identified on a title report if these companies aren’t used to working with one another.  

You can protect yourself from a hefty environmental lien in a couple of different ways. For starters, work with a team like Commercial Partners who understands how to discover these liens and rectify them well in advance of closing. Don’t let an environmental lien sink your next commercial venture. Research the property, discover any potential issues and ensure all potential issues are rectified or accounted for with a title insurance policy. We can assist with all facets of this process, so bring us aboard for your next commercial transaction. Give the team at Commercial Partners a call today at (612) 337-2470.