Selling a House With Liens in Florida

Yes, you can sell a house with liens in Florida. In most sales the title company pays every lien out of your proceeds at closing, records the releases and the buyer gets clear title. Problems come up when the liens add up to more than your equity, or when a lien, such as a code enforcement fine or an IRS lien, needs a reduction or a release before anyone can close.

Common liens and how each one is cleared

Mortgages, property taxes and HOA liens

Mortgages and HELOCs. The title company orders a payoff letter from each lender. It shows the balance plus daily interest through a set date, so a delayed closing means a slightly higher payoff. If you have a home equity line of credit, the lender must freeze and close the line so nothing new is drawn after closing. If you owe more than the house will sell for, you need the lender's approval for a short sale; see our guide on selling before foreclosure.

Property taxes. Florida property taxes become delinquent on April 1, and the county then sells a tax certificate on the unpaid amount, which earns interest. At closing the title company pays the delinquent taxes and any certificate through the Miami-Dade or Broward Tax Collector, and the current year is prorated between buyer and seller.

HOA and condo liens. Associations can record a lien for unpaid assessments. The title company requests an estoppel certificate, which the association must deliver within 10 business days. Under the DBPR's 2024 adjustment, the fee is capped at $299, plus $119 if you need it within 3 business days and up to $179 more if the account is delinquent. Unpaid dues, late fees and the association's legal fees come out of your proceeds.

Code enforcement liens and lien reductions

Code liens are the most common surprise in Miami. Under section 162.09, Florida Statutes, a code board can fine up to $250 a day for a first violation and $500 a day for a repeat violation, and larger local governments can adopt ordinances allowing up to $1,000 and $5,000 a day. Once the order is recorded, it becomes a lien on that property and on other real or personal property the violator owns. Fines keep running until the violation is fixed, which is how an unpermitted carport or an old fence turns into a five- or six-figure lien.

Code liens cannot be foreclosed on a homestead, but buyers and title insurers still require them to be paid or released. The good news is that most cities will consider reducing the fine once the property complies. Each city has its own process:

• Hialeah: the whole property must be in full compliance and other city debts paid before the request is accepted; the Special Master decides, and the reduction is discretionary.
• North Miami: a $250 application fee per folio, a lien search dated within 30 days and a letter of explanation; the City Manager makes the final decision, and you must pay the reduced amount by the good-through date.
• Unincorporated Miami-Dade: the county's Lien and Collection Section issues payoff letters for $80.03 per folio, usually within three business days, and has a special release process when a lien comes from a violation on a different property the owner holds.

Boards consider how serious the violation was, what you did to fix it and any prior violations. Bring permits, final inspections, invoices and photos. Our guide on open permits and code violations explains how to get a property into compliance first.

Judgment, contractor and IRS liens

Judgment liens. A creditor who wins a lawsuit can record a certified copy of the judgment in the county's official records. It lasts 10 years and can be re-recorded for up to 20. If the property is your Florida homestead, most judgment liens don't attach to it, and title companies often accept a homestead affidavit. On rentals, second homes and inherited properties, the judgment usually has to be paid or settled.

Contractor liens. An unpaid contractor or supplier can record a claim of lien under chapter 713. It generally expires after one year unless the contractor files a lawsuit, and an owner can shorten that window by recording a notice of contest of lien. Disputed amounts can also be moved off the property with a bond so the sale can close.

IRS liens. A federal tax lien attaches to everything the taxpayer owns, homestead included. If the sale won't pay the IRS in full, apply for a certificate of discharge on Form 14135. IRS Publication 783 asks you to apply at least 45 days before the closing date, with the contract, a title report, an appraisal or valuation and a draft closing statement.

How title handles liens at closing

1. Searches: the title company runs a title search of the public records, and a municipal lien search for code, permit and utility items that may not be recorded.
2. Title commitment: every lien shows up as a requirement that must be satisfied before closing.
3. Payoff and estoppel letters: the closer collects exact figures from each lienholder.
4. Settlement statement: each payoff is listed as a deduction from your proceeds, so you see your net before you sign.
5. After closing: the title company wires the payoffs and makes sure satisfactions and releases are recorded.

Run your numbers early with our seller net sheet so there are no surprises on closing day.

How we can help

We order a lien search as soon as we take a listing, so code fines, open permits and old judgments surface before a buyer's inspection period, not the week of closing. We have walked sellers in Miami-Dade and Broward through lien reductions and title cleanup and can point you to the right attorney when needed. Call (786) 545-9222 for a free consult.

Frequently asked questions