Definition
Tax liens are placed by government when property taxes go unpaid. They have priority over mortgage liens and can result in property foreclosure.
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Tax liens are placed by federal, state, or local governments to secure unpaid taxes. Property tax liens are the most common and typically have priority over mortgage liens. If property taxes go unpaid, the government can foreclose and sell the property. Tax liens appear on title searches and must be paid before closing. Tax liens also affect the owner's credit and can result in severe consequences including property loss.
Pro Tip
Property tax liens have priority. Failure to pay can result in property loss.
Example
The seller paid off the property tax lien at closing to provide clear title.