Can You Sell A House With A Lien On It In Cobb County?
Yes. Most liens get paid off at closing, right out of your sale proceeds, the same way your mortgage does. The closing attorney finds the lien in the title search, gets a payoff from whoever holds it, pays it at the closing table, and makes sure a release gets recorded so the buyer gets clean title.
Where it gets stressful is timing and money. A lien you didn't know about can push back your closing while the attorney chases a payoff. And if the liens add up to more than your equity, you'll need a plan before the buyer's closing date, not on it.
Here's how it works in Georgia, and what you can do if you're two weeks from closing in Marietta or Kennesaw and the title search just turned up a surprise.
What Kinds Of Liens Show Up On Georgia Homes?
A lien is a legal claim against your property for money you owe. Your mortgage and any home equity line are liens too, but those aren't usually the surprise. These are the ones that catch sellers off guard:
- Judgment liens (fi.fa.). If someone wins a court judgment against you, say a credit card company, a medical provider, or a former landlord, they can get a writ of fieri facias (a "fi.fa.") and record it on the general execution docket. Once it's recorded in the county where your house sits, it becomes a lien on that property. When there's more than one, Nolo explains, they're paid in the order the fi.fa. writs were issued.
- State tax liens. The Georgia Department of Revenue calls these state tax executions. They're issued for unpaid state tax debt.
- Federal tax liens. If you owe the IRS and a Notice of Federal Tax Lien has been filed, it can affect the sale of your home.
- Contractor liens. A roofer, builder, or supplier who says they weren't paid can file a mechanic's or materialman's lien with the Clerk of Superior Court. In Georgia, it has to be filed within 90 days after the work or materials were last furnished.
- Unpaid HOA dues and property taxes. These are usually handled at closing too. If you're in an HOA, here's how HOA charges get settled when you sell.
Sometimes the lien isn't even yours. Common names get mixed up, and an old judgment against a different person with the same name can show up in a search. Don't assume a lien is valid just because it's on the report. Ask the closing attorney to confirm it's actually you.
How Does A Lien Get Paid Off At Closing?
In Georgia, a closing attorney runs the closing. Part of that job is examining title and clearing anything recorded against the property before the deed changes hands. Here's how it usually goes:
- The title search finds the lien. The attorney searches the county records, including the lien index, and updates the search close to closing to catch anything new.
- The attorney requests a payoff. That's a written statement from the lienholder (or their attorney) of exactly what it takes to satisfy the lien.
- The payoff comes out of your proceeds. It shows up on your settlement statement, just like your mortgage payoff.
- The lien gets released. The lienholder cancels or releases it so it no longer clouds the title. The Department of Revenue, for example, says it releases a state tax lien within five days after full payment posts.
The step that drags is usually number two. In one Georgia question on Justia, a Fairburn seller with two weeks to closing couldn't get one lienholder's attorney to answer three payoff requests. A Georgia closing attorney who answered said these payoffs can take a few weeks for all kinds of reasons, but they do eventually come. That's exactly why you want the title search started the day you go under contract, not the week before closing.
Here's a simple example. You sell your Smyrna home for $400,000. You owe $240,000 on the mortgage, there's an $18,000 judgment lien from an old debt, and selling costs come to about $28,000. After everything is paid, you walk away with about $114,000. The lien didn't stop the sale. It just came out of your check.
What the seller still walks away with in this example, after the mortgage, an $18,000 lien, and selling costs
If you'd like to see what else typically comes out of a seller's proceeds, our breakdown of what sellers pay at closing in Metro Atlanta walks through it.
What If The Lien Is Old, Wrong, Or More Than You Can Pay?
This is where you need the closing attorney, and possibly your own attorney, involved early. A few things are worth knowing:
- Some old judgments go dormant. Under Georgia law (O.C.G.A. § 9-12-60), a judgment goes dormant and can't be enforced if seven years pass without the creditor taking certain steps recorded on the execution docket. Each qualifying step starts a new seven-year clock, and a dormant judgment can still be revived within three years. Child support and spousal support judgments don't go dormant at all. Whether an old judgment is still good is a legal question for an attorney, not a guess.
- Contractor liens have deadlines too. In Georgia, the contractor has to file suit to enforce the lien within 365 days of recording it, or the lien becomes unenforceable. If you dispute the bill, a lien can also be discharged by posting a bond, which replaces the house as the security for the claim.
- Tax liens can sometimes be released from just this property. The Georgia Department of Revenue requires full payment to release a lien, but in certain circumstances you can apply for a partial release of a specific property. Its FAQ says to apply at least 30 days before closing. The IRS has a similar process, called a certificate of discharge, using Form 14135.
- Many lienholders will negotiate. A judgment creditor who's been waiting years may take less than the full amount to get paid now. Nolo notes that a settlement often gets the creditor paid faster and cheaper than other collection methods.
How long a Georgia judgment can sit before going dormant without a recorded enforcement step
If the liens and the mortgage together are more than the house will sell for, that's a bigger conversation. You may be looking at a negotiated payoff with each lienholder, or a different path entirely. If you're also behind on the mortgage, here's how selling before foreclosure works.
How Do You Keep A Lien From Wrecking Your Closing?
Most lien problems at closing are timing problems. Here's how to stay ahead of them:
- Search your own name before you list. Georgia's Superior Court Clerks' Cooperative Authority (GSCCCA) runs a statewide lien index you can search by name at search.gsccca.org. The Department of Revenue also has a search for pending state tax liens.
- Tell your agent and the closing attorney up front.
- Get payoffs early. Ask for the payoff the week you go under contract, especially for judgment liens held by out-of-state collection firms.
- Pay your contractors and get lien waivers. If you had work done in the last few months, like a new roof in Acworth or a deck in Powder Springs, make sure everyone is paid and you have their waiver in hand.
- Know your equity. Before you pick a price, add up the mortgage, every lien, and your selling costs. That's the number that tells you whether this is a simple sale or one that needs negotiating.
If you're wondering whether you need your own attorney on top of the closing attorney, we cover that in Do I Need an Attorney to Sell My House in Georgia?
This is exactly the kind of thing I help sellers sort out before it turns into a last-minute scramble. The earlier we know about it, the more options you have.
A lien you mention on day one is a to-do item. A lien they find on day 25 is a delay.
Frequently Asked Questions
Can I sell my house if there's a judgment lien on it in Georgia?
Yes. In most cases the judgment lien is paid from your proceeds at closing, and the creditor releases it so the buyer gets clean title. If there isn't enough equity to cover it, you'll need to negotiate a payoff with the creditor before closing.
How do I find out if there's a lien on my house in Cobb County?
You can search the Georgia Consolidated Lien Index by name on the GSCCCA website, and the Georgia Department of Revenue offers a search for pending state tax liens. Your closing attorney's title search is the final word, so tell them about anything you find.
How long does a judgment lien last in Georgia?
Under O.C.G.A. § 9-12-60, a judgment goes dormant after seven years unless the creditor takes certain enforcement steps that are recorded, and each step restarts the seven years. A dormant judgment can be revived within three years. Child support and spousal support judgments don't go dormant.
What happens if a contractor puts a lien on my house?
In Georgia, the contractor must file the lien within 90 days of last furnishing work or materials and sue to enforce it within 365 days of recording it. If you dispute it, you can discharge it with a bond so it doesn't hold up your sale. Talk to an attorney before closing.
Can a lien stop my closing?
It can delay it. The closing attorney won't close until every lien on record is paid, released, bonded, or otherwise cleared. The most common holdup is waiting on a payoff letter, which is why you should start the title work as soon as you're under contract.
How Much Will You Walk Away With After The Liens?
A lien doesn't have to stop your sale. It just has to be planned for. Once you know what your home will sell for, you can see whether every lien gets paid at closing with room to spare, or whether you need to start negotiating now.
If you own a home in Cobb or Cherokee County, start with a free home value report (also called a CMA, or comparative market analysis). We'll look at your number and what it means for your payoffs. No pressure, just a plan.
Own A Home In Cobb Or Cherokee County?
Get a free home value report and see what your number means for your payoffs, with no pressure and a plan for your next step.
Ken Mandich is a Realtor® and team lead at Complete Realty Team, serving Metro Atlanta with a focus on Cobb and Cherokee County. As an active real estate investor, Ken brings a rare combination of hands-on investing experience and full-service agent expertise to every seller and buyer he works with. He's built his business around clear communication and walking clients through every step of the process, from pricing a home right to closing with confidence. You can reach him at 404-410-6465 or [email protected].
