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Can someone sell land that has a lein on it to a relative for a small amount of money; & then that relative have a clean title?

Pheba, MS |

I was told that the money it sold for (can it be a small amount) would be given to the lein holders; thus giving the new owner a clear title. Can this be done?

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Attorney answers 1

Posted

Normally the lien is paid off at closing. Your title company should contact the lien holder for a payoff amount, and arrange for the payment. If the lien holder can't be contacted, a sufficient amount of money might be placed into escrow by the title company, or paid into a court in order to make sure that the lien is taken care of.

Cameron Kelly
www.cameronkellylaw.com

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