The first thing most sellers want to know when they find out there's a lien on their property is whether they can still sell. In almost every case, the answer is yes. A lien is a claim against the property — not a padlock on the deed. It has to be resolved before a buyer takes clear title, but it gets resolved at closing, through the title company, out of the sale proceeds. You don't need to pay it off before you list or before you accept an offer. What you do need is an accurate picture of what you owe and what you'll net. Let me walk through each type we regularly see on Ohio properties.
Ohio Property Liens at a Glance
| Lien Type | Duration in Ohio | Key ORC / Federal Cite | Paid at Closing? |
|---|---|---|---|
| Property tax lien | No expiration — county can foreclose | ORC § 5721.10 | Yes — title company pays county treasurer |
| Judgment lien | 10 years, renewable for 10 more | ORC § 2329.02 | Yes — paid from proceeds at closing |
| Mechanic's / contractor's lien | 6 years from filing date | ORC § 1311.13 | Yes — paid or bonded off at closing |
| Federal IRS lien | 10 years from assessment date | IRC § 6502 | Yes — IRS payoff coordinated through title |
| Medicaid estate recovery lien | Until resolved or estate settled | ORC § 5160.37 | Yes — ODJFS payoff required before deed transfer |
| HOA / condo lien | Varies by HOA declaration | ORC § 5311.18 (condos) | Yes — paid from proceeds at closing |
Property Tax Liens — No Expiration, and the County Can Foreclose
A property tax lien attaches the day a payment goes unpaid and never expires. Unlike most debt in Ohio, it cannot be negotiated away, discharged in bankruptcy, or simply ignored until it becomes unenforceable. If left unaddressed, the county treasurer will eventually pursue tax foreclosure — a process that ends in the property being sold at sheriff's auction. We've covered the full tax foreclosure timeline in a separate post if you need that detail. The short version: you have more runway than most people think, but the meter is always running because Ohio charges 1.5% monthly interest plus penalties.
At closing, the title company requests an exact payoff figure from the county treasurer — including all interest and penalties calculated through the closing date. That number appears on your settlement statement as a deduction. The title company wires it directly to the county. You receive whatever remains.
Judgment Liens — When Old Debts Become Property Claims
A judgment lien arises when someone sues you, wins, and records the judgment with the county. Under ORC § 2329.02, a recorded judgment lien is valid for 10 years and can be renewed for another 10. This means a judgment from a 2015 lawsuit could still be sitting on your title today — and it survives property transfers if not paid off. Medical debt, credit card debt converted to judgment, lawsuits from contractors — any of these can become a lien if the creditor took the right steps.
Judgment liens are sometimes negotiable. If the creditor is a collection agency or the original creditor has sold the debt, there's often room to settle for less than the face amount of the judgment — especially if the lien is old and collection has been dormant. A real estate attorney can sometimes negotiate a discounted payoff as part of the closing process. We've seen this done successfully when a judgment was large enough to threaten the deal but old enough that the creditor was motivated to accept a settlement.
Mechanic's Liens — Unpaid Contractors and the Work They Did
A mechanic's lien (called a 'materialman's lien' in some contexts) is filed by a contractor, subcontractor, or material supplier who performed work or supplied materials to your property and wasn't paid. Under ORC § 1311.13, the lien is valid for 6 years from the filing date and can be extended if the creditor re-files. We see these most often in two situations: inherited properties where the deceased owner had renovation work done near the end of their life, and properties where a seller or prior owner attempted repairs and the contractor relationship soured.
Unlike tax liens or judgment liens, mechanic's liens are sometimes disputable — if the work wasn't completed, was done defectively, or the amount claimed is inflated, there may be grounds to contest rather than pay in full. This requires a real estate attorney and takes time, but on large claims it can be worth the effort. On smaller claims, the practical path is usually to negotiate directly with the contractor for a lien release in exchange for payment at closing.
Medicaid Estate Recovery Liens — The Most Overlooked Issue in Ohio Inherited Properties
This one catches families off guard more often than any other lien type. If your parent or family member received Medicaid benefits in Ohio — particularly long-term care, nursing home coverage, or home health services — the Ohio Department of Job and Family Services (ODJFS) has the right under ORC § 5160.37 to recover those costs from the estate. The recovery mechanism is a lien against the property.
The lien is placed silently — there's no notice to the heirs at the time of placement, and many families discover it only when the title company runs the search during a sale. The amount can be substantial: Ohio Medicaid averages roughly $250 per day for nursing home coverage, meaning a two-year nursing home stay could generate a $180,000+ Medicaid claim against the estate. There are hardship waivers and spousal protection provisions under Ohio law that can reduce or delay recovery, but these require a specific application process. If you've inherited an Ohio property and your family member received Medicaid, assume there's a lien and have the title searched before you make any plans around the proceeds.
When Multiple Liens Stack Up on the Same Property
It's not unusual for a distressed Ohio property to carry more than one lien simultaneously — a tax delinquency alongside an old judgment, or a Medicaid lien on an inherited house that also has mechanic's liens from work done years ago. Each lien has a priority order for payoff. Tax liens generally have the highest priority, followed by mortgage liens, then recorded judgment liens in the order they were filed. The title company will sort this out, but you should request a preliminary title report before you're too far into a sale so you know what you're dealing with.
What If the Liens Add Up to More Than the House Is Worth?
This happens — more often on properties that have been in distress for years. When the combined lien payoffs exceed what the property will sell for, you're upside down. The options here depend on which liens are involved. Tax liens with the county: some Ohio treasurers will negotiate a settlement when a sale is pending, though this isn't guaranteed. Judgment liens: negotiable, especially old or sold-off debts. Medicaid liens: ODJFS has a hardship waiver process that can reduce the recovery amount in certain circumstances. Mortgage lenders: a short sale requires lender approval but can resolve the situation without foreclosure.
When we buy properties in this situation, we do the math on what the liens total, what the property is worth, and whether there's a path to closing that works for both sides. Sometimes there is and sometimes there isn't — but we'll tell you directly either way rather than tie up your property in a contract that was never going to close.
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Mike Wall · Owner-operated since 2016 — no middlemenWhat the Title Company Actually Does When Liens Show Up
A thorough title search — the kind a licensed Ohio title company runs before every closing — goes back 40 to 60 years on the property's ownership history. It searches the county recorder's records for all recorded liens and encumbrances. When liens are found, the title company:
- 1Identifies every lien holder and the recorded amount.
- 2Requests a current payoff figure from each lien holder — the payoff as of the projected closing date, including interest.
- 3Lists each payoff as a deduction on your settlement statement (ALTA statement). You see exactly what you owe to each party before you sign.
- 4At closing, wires the payoff amounts directly to the lien holders from the sale proceeds.
- 5Obtains lien releases from each creditor — formal documents confirming the debt has been satisfied.
- 6Records the lien releases with the county recorder to clear the title permanently.
You don't need to manage this process yourself. The title company does it — that's what they're there for. Your job is to make sure the title company is licensed in Ohio, is reputable, and has experience with distressed or liened properties. We use local Ohio title companies we've worked with for years on every transaction.
Frequently Asked Questions
Can I sell my Ohio home without paying off the liens first?
Yes. You don't need cash in hand before you sell. The liens are paid at closing out of the sale proceeds — you receive the remainder. The only exception is if the liens total more than the sale price, in which case additional negotiation is required before the title company can clear the title.
Will a lien show up on a credit report and affect my ability to sell?
Property liens are recorded with the county recorder and show up on a title search — they're separate from your credit report. A buyer's lender will not issue mortgage financing on a property with an unresolved lien, which is why cash buyers are often the most practical path when significant liens are involved. We don't have a lender requiring the title to be clean before we commit funds.
What's the difference between a lien and a mortgage?
A mortgage is a voluntary lien — you agreed to it when you borrowed money to buy the home. Involuntary liens are placed against your will by creditors, the government, or contractors. Both appear on the title and both must be paid at or before closing. The mortgage payoff is always included in your settlement statement alongside any other liens.
I inherited a property with liens I didn't know about. Am I personally responsible?
The liens follow the property, not the person. If you inherit a property with a $50,000 judgment lien, that lien must be paid when the property is sold — but you are not personally liable for the $50,000 beyond the value of the property. Your personal assets and credit are not at risk simply because you inherited a liened property. The estate absorbs the lien payoff from the sale proceeds.
If your situation matches what you're reading, EZ Sell Homebuyers can give you a fair cash offer within 15 minutes — no repairs, no fees, no pressure. We specialize in helping homeowners stop foreclosure and sell your house fast for cash in Ohio, sell your house as-is in Ohio, and sell a house with code violations in Ohio. We also serve all major Dayton-area cities — see our pages for Kettering, Springboro, Beavercreek, and cash buyers serving all of Ohio.
Mike has personally been involved in 1,700+ career real estate transactions. Since 2016, he and Jay Thoms have purchased 350+ Dayton-area homes for cash through EZ Sell Homebuyers. He personally reviews every offer and returns calls the same day.