Encumbrances That Can Stop You From Selling Your Home

 Posted on June 13, 2026 in Real Estate

Selling a home is often an exciting prospect. That said, the process can also be rife with difficulties – especially when it comes to the title. Before you can sell your home, you should make sure that it is free of encumbrances. A San Antonio, TX real estate attorney can review your property for any issues and help you take action to correct them.

Geoff Mayfield, Attorney at Law, has over 15 years of experience helping clients with different legal matters. As a solo attorney, he can provide you with individualized legal advice and guidance, so you can rest assured that your case won’t be passed from lawyer to lawyer.

What Is an Encumbrance?

An encumbrance is anything that limits your ability to transfer clean ownership of your property to someone else. It is a claim, restriction, or liability attached to the land or the title itself. Some encumbrances affect how the property can be used. Others affect whether it can be sold at all.

Encumbrances come in different forms. A lien is a financial claim against the property. An easement gives someone else the right to use a portion of it. A deed restriction limits what can be built or done on the land. In some cases, a court judgment can become a lien against real estate and remain attached until the debt is paid or otherwise resolved. In each case, the encumbrance generally runs with the property rather than the owner, which means it can affect future buyers as well as the current owner.

Many homeowners do not know an encumbrance exists until they are already in the middle of a sale. A title search usually brings these issues to the surface. When one does appear, it can slow down or completely derail a closing.

Can an Encumbrance Stop the Sale of a Home?

An unresolved encumbrance can prevent a sale from closing. Most buyers rely on financing, and lenders require a clear title before they will fund a loan. If a title search reveals an outstanding lien or unresolved claim, the lender will typically refuse to proceed until the issue is addressed.

Even in cash transactions, buyers have every reason to demand a clean title. Purchasing a home with an attached encumbrance can mean inheriting legal or financial complications that affect the property's value or use. If a lien is discovered after closing, it may create significant problems for the buyer and could require legal action to resolve, depending on the circumstances of the transaction.

Texas law requires sellers to disclose known title issues. Failing to do so can expose a seller to legal liability after the sale. Resolving encumbrances before listing a property is almost always easier and less expensive than trying to untangle them after a deal falls apart.

Common Kinds of Liens and Easements on Real Estate Property in Texas

Liens are the most common encumbrances that block sales. A mortgage lien is the most familiar. It stays on the property until the loan is paid off. At closing, the proceeds from the sale typically pay off the remaining mortgage balance, and the lien is released.

Other liens are less expected. A mechanic's lien can be filed by a contractor, subcontractor, or supplier who was not paid for work done on the property (Texas Property Code Sec. 53). These liens can attach even if the homeowner believed the general contractor had already paid everyone involved. Tax liens arise when property taxes go unpaid. A judgment lien can attach to real estate when a court rules against the property owner in a civil lawsuit.

Homeowners' association liens are also common in Texas. When dues or assessments go unpaid, an HOA may have the right to place a lien on the property. Depending on the governing documents and state law, these liens can carry serious weight.

Easements are different from liens. They do not involve money owed. Instead, they grant someone else a right to use part of the property. A utility easement allows a power or water company to access a portion of the land. An access easement may give a neighbor the right to cross the property to reach their own. Easements usually do not stop a sale outright, but they must be disclosed and can affect what a buyer is willing to pay.

How Can You Clear an Encumbrance on a Residential Real Estate Property in 2026?

The right approach to clear a title issue depends on the type of encumbrance. For a mortgage lien, the answer is straightforward. The lien is paid off at closing from the sale proceeds, and the lender releases it.

For mechanics' liens, the process can be more involved. You may need to negotiate with the contractor, pay the outstanding balance, or dispute the lien if it was filed improperly. Texas has specific rules about how and when mechanic's liens must be filed. An improperly filed lien can sometimes be challenged and removed.

Tax liens generally must be paid before a sale can close. In some cases, a payment arrangement with the taxing authority may be possible. Judgment liens can sometimes be negotiated down or challenged if the underlying judgment is old or legally flawed. A residential real estate attorney can run a full title search and identify what needs to be resolved before you list the property.

The Dangers of Selling a Home in Texas With Unresolved Title Issues

Selling a home with an unresolved encumbrance puts everyone involved at risk. A sale that closes without clearing a lien can lead to lawsuits, unwound transactions, and serious financial loss for both the seller and the buyer.

Texas title insurance exists to protect against some of these risks. But title insurance does not fix a bad title. It compensates a policyholder after a covered loss. Prevention is a far better approach than recovery.

Sellers who knowingly transfer property with undisclosed title defects can also face fraud claims. Buyers who fail to conduct proper due diligence can find themselves holding a property they cannot refinance or resell. The consequences of moving too fast, or skipping a title review entirely, can follow both parties for years.

Contact a San Antonio, TX Real Estate Title Lawyer

If you are preparing to sell your home and have questions about liens, easements, or other title issues, Geoff Mayfield, Attorney at Law, is here to help. Contact our Bexar County, TX residential real estate attorney at 210-535-0870 to schedule a free consultation.