Selling a home can be an exciting yet overwhelming process, especially if it’s your first time. But what happens if you discover there’s a lien on your property? Can you still sell your house in Ontario? What does a lien even mean?

In this beginner-friendly guide, Team Philer explains everything you need to know about property liens in Ontario, how they can affect a home sale, and what steps you can take to resolve the issue. Let’s break it down in the simplest way possible- starting with:

🏠 What Is a Lien on a Property?

A lien is a legal claim against a property by a person or organization who is owed money. Think of it like a “red flag” that gets attached to your home’s title, saying:

“This property owner owes money, and we want to be paid before the house is sold.”

In Ontario, if there is a lien on your home, it will be reflected on, or show up, your title, which is the legal record of property ownership.

🔎 Who Can Put a Lien on Your Home?

Several parties can place a lien on a property in Ontario, including:

• Mortgage Lenders: If you have a mortgage, the lender already has a lien on your home until the loan is paid off.
• Contractors or Tradespeople: If someone did work on your home and wasn’t paid (e.g., a roofer or plumber), they can file a construction lien.
• The Canada Revenue Agency (CRA): If you owe unpaid taxes, CRA can place a lien.
• Condo Corporations: For unpaid condo fees.
• Courts: If you’ve lost a lawsuit and owe money.

🚧 Can You Sell a House That Has a Lien?

Yes, you can—but there’s a catch.
You cannot transfer ownership of your home (i.e., close the sale) unless the lien is dealt with. Most buyers will not (and should not) agree to buy a home with a lien still attached.

So what are your options?

✅ How to Sell a House with a Lien in Ontario: Step-by-Step

Here’s how the process usually works:

1. Find Out If There’s a Lien

Most homeowners learn about liens during the title search, which happens during the sale process. A real estate lawyer (or your buyer’s lawyer) will check the title through Teraview (Ontario’s land registry system).

🔍 Tip: You can request a title search in advance with a real estate lawyer or title service to avoid surprises.

2. Understand the Type and Amount of the Lien

Once you confirm a lien exists, ask:

• Who placed it?
• How much is owed?
• What type of lien is it?

This will help you plan how to deal with it.

3. Resolve the Lien

Most liens must be paid off before the sale can go through. Here’s how:

• Pay it from the sale proceeds: Many homeowners use part of the money from the sale to pay off the lien at closing.
• Negotiate the amount: Sometimes lien holders will agree to accept a lower amount, especially if the sale will help them recover something rather than nothing.
• Dispute it (if necessary): If you believe the lien is wrong, a lawyer can help you dispute it in court or through legal negotiation.

4. Remove the Lien from the Title

Once it’s paid or resolved, your lawyer will file a discharge of the lien. This updates the title and clears the way for the new buyer to take ownership.

📄 What Happens If You Try to Sell Without Clearing the Lien?

You’ll likely hit a wall at closing. The buyer’s lawyer will flag the issue, and lenders may refuse to release mortgage funds. In short:

The sale cannot close unless the lien is cleared or properly addressed.

👨‍⚖️ Why You Need a Real Estate Lawyer

Liens are legal issues, so trying to handle them on your own is risky. A real estate lawyer in Ontario can:

• Run a title search to check for liens
• Contact the lienholder on your behalf
• Negotiate payoff terms or dispute invalid liens
• File paperwork to remove the lien from your title
• Coordinate with the buyer’s lawyer to keep the sale on track

At Philer.ai, our digital legal services make this easier. You can access an experienced Ontario real estate lawyer online—without ever stepping into a law office.

💡 Common Questions About Liens and Selling a House in Ontario

❓ Can I sell my home if I didn’t know there was a lien?

Yes, but it must be resolved before the sale closes. Many homeowners only learn about liens during the selling process.

❓ Can the buyer agree to take the home with the lien?

In theory, yes—but it’s extremely rare. Most buyers won’t accept the risk. Plus, their mortgage lender will likely block the deal.

❓ How long does it take to remove a lien?

It depends on the situation, but most liens can be cleared in a few days to a couple of weeks, especially with a lawyer’s help.

📌 Remember:

• A lien is a legal claim on your property and must be resolved before a sale can close.
• You can sell a house with a lien, but it must be paid or cleared beforehand.
• The process is very manageable with the help of a real estate lawyer.
• Philer.ai offers affordable, online legal help for Ontario homeowners looking to sell—whether or not your title is lien-free.

🧑‍💼 Need Help Clearing a Lien Before Selling?

Philer.ai connects you with qualified Ontario real estate lawyers—digitally. We handle title searches, lien resolution, and all your legal documents so you can sell with peace of mind.

👉 [Get Started Today] – No office visits. No stress. Just smart real estate law, made simple.