One of the most important steps in a NYC closing is the lien-clearing process. Title companies don’t just check for liens; they resolve them so the buyer receives clean, transferable ownership. In Staten Island and Brooklyn, where older properties often have decades of financial history, lien clearing is a core part of the closing timeline.

What Title Companies Look For

Title searches identify:

• Outstanding mortgages

• Old mortgages never properly discharged

• Judgments or court-ordered debts

• Child support liens

• Unpaid property taxes or water charges

• Mechanic’s liens from contractors

These appear on the title report that attorneys review.

How Liens Are Actually Cleared

• Payoff verification: The title company contacts lenders or agencies to verify exact payoff amounts.

• Document preparation: The seller signs payoff authorizations so title can request releases.

• Wire or check disbursement: At closing, title pays lien holders directly from seller proceeds.

• Recording releases: After payment, the lien holders issue releases which title records with the county.

• Cleared title issued: Once all liens are released, the buyer receives title insurance.

Why Delays Happen

• Old mortgages where the bank no longer exists

• Missing satisfactions from decades ago

• Misfiled judgments or outdated name spellings

• Contractor liens that require negotiation

Proper lien clearance ensures no one can claim interest in the property after closing.

—

Joseph Ranola | Five-Star Staten Island & South Brooklyn Realtor® (30 + Google reviews)
Associate Broker · Matias Real Estate | Founder · Bridge & Boro Team
Serving 103xx and 11209 / 11214 / 11228 | $25 M + closed volume
📞 917-716-1496 | ranolarealestate.com