We bought our dream home in Georgia last year — but recently discovered a $10,000 lien that was missed in the title search. We have 60 days to pay. Do we have legal recourse?

How can you miss a lien?

In real estate transactions, a title search is an essential process that uncovers any legal claims, unpaid debts or ownership issues tied to the property. During a search, a title company investigates public records to check for anything that might affect your ownership rights. The goal is to ensure a “clean” title, meaning you’re purchasing the home without any outstanding legal issues attached.

A lien, one of the most common issues uncovered in a title search, is a debt attached to the property, such as unpaid taxes or contractor fees. When there’s a lien, the creditor has the legal right to claim part of the property’s value to satisfy the debt, which can even result in a foreclosure if left unresolved.

The bad news for a home’s new and unsuspecting owner is that a lien often transfers with property ownership — so if a previous owner left debts unpaid, new owners may find themselves liable for those costs.

Most standard title searches are thorough, but some liens can slip through the cracks. Common types of liens that may go unnoticed are:

• Mechanics’ liens: Placed by contractors or subcontractors for unpaid work, these liens can sometimes appear after a title search if they weren’t filed promptly.

• Tax liens: If a previous owner neglected property taxes, a lien might have been placed by the government. Although these liens are usually visible, filing errors can occasionally delay their discovery.

• Judgment liens: These liens result from court judgments, often for unpaid debts. Like mechanics’ liens, timing or clerical issues can sometimes delay their visibility in title searches.

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Do you have legal recourse?

If you’re facing a missed lien, the first step is to gather any documentation from the purchase, particularly regarding the title search and title insurance.

Reach out to the title company that handled the transaction. They may be able to explain why the lien wasn’t discovered or identify errors in the search process. If you purchased title insurance, review your policy carefully. Title insurance often covers financial losses due to missed liens. Filing a claim could result in the insurer covering the lien cost, sparing you the immediate out-of-pocket expense.

A real estate attorney can also help review your purchase documents, assess any liability issues, and determine whether you have grounds to pursue legal action against the title company or the seller if they failed to disclose known liens.

Avoiding the lien surprise

Liens and title issues may not always be avoidable, but a few steps can reduce your risk:

• Second opinion: Working with a reputable title company and verifying the title search results can help prevent unexpected issues. Some buyers even request a second opinion, especially on higher-value properties.

• More insurance: Basic title insurance policies often exclude certain liens. Choosing a more comprehensive policy can offer broader protection, especially for large purchases or properties with multiple prior owners.

• Due diligence: Beyond the title search, review all seller disclosures and ask questions about any past renovations, taxes or court cases tied to the property. While it may seem excessive or awkward, it beats getting a costly surprise down the road.