The main types of liens in real estate are property tax liens, mortgages, construction liens, homeowners' association liens, judgment liens and federal tax liens, and each one is paid in an order set by the law and by when it was recorded. This guide is for new investors who want to understand how those liens differ and why a property tax lien sits at the front of the line in Florida. It also explains what that priority does and does not do for someone who buys a tax lien.
Last reviewed against the 2026 Florida Statutes and the IRS website on September 30, 2026. This guide is educational and is not legal, tax or investment advice. Lien rules differ by state, so confirm them with a licensed attorney or title company before you buy.
What Is a Lien in Real Estate?
A lien is a legal claim on a property that secures a debt, and the claim stays with the property until the debt is paid or the lien is removed. The property owner can still live in the property or sell it, but the lienholder's claim has to be dealt with. Investors care about liens because the claims on a property decide who gets paid and in what order.
Voluntary and Involuntary Liens
Liens fall into two broad groups depending on how they start. A voluntary lien exists because the owner agreed to it, and a mortgage is the standard example. An involuntary lien arises without the owner's consent, either by law, as with property taxes, or through a creditor's action, as with a court judgment.
Why Investors Need to Understand Them
A tax lien investor buys a lien, so the ranking of every other claim on the property affects the deal. A property with several liens shows who else has a claim and who may act if the taxes go unpaid. Reading the liens on a parcel is part of judging how safe your money is.
What Are the Main Types of Liens in Real Estate?
The six main types of liens for investors to know are property tax, mortgage, construction, homeowners' association, judgment and federal tax liens. The table shows how each one arises and gives a Florida example of its priority rule, since Florida's statutes are easy to check. This guide uses Florida as its worked example, and other states set their own priority rules.
| Lien type | How it arises | Florida example |
|---|---|---|
| Property tax lien | Attaches by law when property taxes are levied | Section 197.122: a first lien, superior to all other liens, from January 1 of the tax year |
| Mortgage lien | The owner pledges the property to secure a loan | Section 695.01: an unrecorded mortgage is not effective against later purchasers or creditors without notice |
| Construction lien | A contractor or supplier is not paid for work on the property | Section 713.07: priority runs from the recorded notice of commencement, or from the claim of lien if none was filed |
| HOA lien | An association claims unpaid assessments under its governing documents | Section 720.3085: relates back to the recorded declaration, but for first mortgages of record it takes effect when the claim of lien is recorded |
| Judgment lien | A court judgment is recorded against the owner's real property | Section 55.10: a lien when a certified copy is recorded, for 10 years and extendable for another 10 |
| Federal tax lien | The IRS claims unpaid federal tax after assessment, notice and non-payment | IRS: covers all property, including real estate, and a public notice alerts other creditors |
Property Tax Liens
A property tax lien is the government's claim for unpaid real estate taxes, and it attaches by law without any action by the owner or the county. In Florida, section 197.122 makes taxes a first lien, superior to all other liens, and the lien runs from January 1 of the year the taxes were levied until they are paid or barred by law. This is the lien that tax lien investors buy through a tax certificate.
Mortgage Liens
A mortgage lien is created when a borrower pledges a property to secure a loan. Because the owner agrees to it, it is a voluntary lien. Florida's recording statute says an unrecorded mortgage is not effective against later purchasers or creditors who had no notice, so a lender that wants protection records the mortgage.
Construction Liens
A construction lien, often called a mechanic's lien, protects contractors, laborers and suppliers who are not paid for work on a property. Under section 713.07, these liens take priority from the recording of the notice of commencement, and a claim recorded before that time keeps priority over them. The date of recording therefore decides the order between a construction lien and a mortgage.
HOA and Condominium Assessment Liens
A homeowners' association can hold a lien for unpaid assessments when its governing documents allow it. Under section 720.3085, that lien relates back to the recording of the community's declaration, except that it only takes effect against first mortgages of record when the association records a claim of lien. Condominium law adds limits: section 718.116 caps a first mortgagee's liability for old assessments at the lesser of 12 months of unpaid common expenses and regular assessments or 1% of the original mortgage debt, under conditions the statute sets.
Judgment Liens
A judgment lien follows a court ruling in favor of a creditor. In Florida, a judgment becomes a lien on real property in a county when a certified copy is recorded in the official records, and the lien lasts an initial 10 years and can be extended for another 10 under section 55.10. A judgment that is never recorded in that county does not become a lien on its real property.
Federal Tax Liens
A federal tax lien is the IRS's legal claim against a person's property when they fail to pay a tax debt. The IRS says the lien exists after it assesses the liability, sends a notice and demand for payment, and the taxpayer neglects or refuses to pay, and that it covers real estate, personal property and financial assets. The IRS files a public Notice of Federal Tax Lien to alert other creditors, and its guide to understanding a federal tax lien explains releases and subordination.
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How Does Lien Priority Work?
Lien priority is the order in which claims on a property are paid, and it depends on the type of lien, the date it was recorded and the statutes of the state. A lien that ranks ahead of the others is senior, and a lien that ranks behind is junior. The order matters most when a property is sold, foreclosed or auctioned for less than the total debt.
Recording Dates Set Many Rankings
Some priority questions come down to which claim was recorded first. Florida's recording statute protects later purchasers and creditors from unrecorded interests, and section 713.07 ties a construction lien's priority to a recording date. Recording is also how a court judgment becomes a lien on real property in Florida.
Recording does not settle every case. The HOA rule above shows a lien that relates back to an earlier document, and property taxes rank first regardless of when other liens were recorded. Each lien type has its own rule, so read the statute for the lien in front of you.
Why Property Taxes Rank First
Property tax liens rank first because the law places them ahead of other claims. Florida's statute calls them a first lien, superior to all other liens, and the lien exists from January 1 of the tax year. In Arizona, the author of an article in the Arizona School of Real Estate and Business writes that property taxes have the highest lien priority by law and that federal tax liens rank by the order recorded. That is one practitioner's summary, so check your own state's statutes.
Other states may treat particular liens differently, so treat the first position for taxes as a pattern to confirm in your own state and not as a rule for every state.
Senior Liens vs. Junior Liens
A senior lien is paid before a junior lien, and a lien is junior to every lien ranked above it. In Florida, a property tax lien is senior to every other lien on the parcel, and section 713.07(3) shows how recording order creates the rest: an encumbrance recorded before a construction lien attaches has priority over that lien. The IRS adds that a subordination can let other creditors move ahead of a federal tax lien.
Where Do Tax Liens Rank Among the Types of Liens?
Tax liens rank first among the types of liens on a property in Florida, and that first position is what a tax lien certificate represents. The certificate does not make you the owner. It gives you the county's tax claim and the right to be repaid with interest if the owner redeems. Our guide to what a tax lien certificate is covers the product in full.
What Priority Means for a Tax Lien Investor
First position means the taxes come out ahead of mortgages, judgments and other claims when the property is sold or the lien is resolved. When the owner or another party pays the tax debt, the lien is redeemed and the certificate holder is repaid with interest. That is why the lien is described as a strong claim and not a guaranteed payout.
What Happens to Other Liens After a Deed Sale
The effect on other liens depends on the state and the sale. In Florida, section 197.552 says liens held by governmental units and special districts can survive a tax deed sale if they are not satisfied from the proceeds, so a deed buyer can inherit some claims. Money bid above the certificate holder's statutory amount is paid out under section 197.582, and our guide to county surplus funds explains who can claim it. Our Florida tax deed sales guide covers the deed stage.
What Priority Does Not Guarantee
Priority decides who is paid first, and it does not decide whether there is enough money to pay anyone. A first lien on a property worth less than the tax debt protects little. Priority also does not shorten the wait, because the owner decides when to repay. Our overview of the risks of buying tax liens explains how experienced investors weigh those limits, and our guide to tax lien vs tax deed investing shows how the two products differ.
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How to Check What Liens Are on a Property
Check a property's liens by searching the county's official records for the parcel and its owner, then confirm what you find with a title company or attorney. Judgments, mortgages and construction liens are protected by recording, so the county's records are where they show up, and the tax collector's records show other tax certificates on the same parcel. Our guide to how to research property tax liens before you bid walks through the full routine.
Mistakes to Avoid With Liens
Four mistakes are easy to make when you are learning about liens: assuming every lien ranks by date, assuming priority means payment, skipping the records search and forgetting that rules differ by state. Each one can be avoided with a plan made before you invest.
- Assuming date order always wins: property taxes and some HOA liens follow their own rules.
- Assuming priority means payment: a first lien on a low-value property may still not be repaid in full.
- Skipping the records search: liens that are recorded but not obvious can affect a deed buyer.
- Copying one state's rules: priority, redemption and surviving liens vary by state.
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Key Terms
Lien: A legal claim on a property that secures a debt.
Lien priority: The order in which claims on a property are paid, set by the type of lien, its recording date and state law.
Recording: Filing a document in the county's official records so others have notice of it.
Redemption: The owner's right to repay a tax debt, plus interest and costs, and clear a tax lien.
Tax lien certificate: A claim on a property for unpaid taxes that an investor buys from the county. It pays interest if the owner redeems and does not transfer ownership.
Federal tax lien: The IRS's legal claim against a person's property when they fail to pay a federal tax debt.
Frequently Asked Questions About Types of Liens
What are the main types of liens on real estate?
The main types are property tax liens, mortgage liens, construction liens, homeowners' association liens, judgment liens and federal tax liens. Some are voluntary, like a mortgage, and others arise by law or through a court, like taxes and judgments.
Which lien has priority?
It depends on the type of lien and the state. In Florida, property taxes are a first lien, superior to all other liens, and other liens generally follow their own statutes and recording dates. Confirm the rules in your state before you rely on a ranking.
Do tax liens come before mortgages?
In Florida, yes. Section 197.122 makes property taxes a first lien, superior to all other liens, so a tax lien ranks ahead of a mortgage. Other states differ in the details, so check the statute where the property is located.
Can a lien be removed?
Yes. A lien is removed when the debt is paid or the lien is otherwise released, and the release is recorded where the lien was recorded. The IRS says it releases a federal tax lien within 30 days after the tax debt is paid in full, and other options such as discharge or subordination exist in some cases.
What does lien priority mean?
Lien priority is the order in which claims on a property are paid. It depends on the type of lien, the date it was recorded and the statutes of the state, and in Florida property taxes are a first lien, superior to all other liens.
Key Takeaways
- Learn the six main types of liens, property tax, mortgage, construction, HOA, judgment and federal tax, before you evaluate any property.
- Read the statute for each lien type in your state, because priority rules differ and recording dates do not settle every case.
- Remember that property tax liens rank first in Florida and treat that as a state-specific rule to confirm elsewhere.
- Search the county's official records and the tax collector's records for every lien on a parcel before you commit money.
- Do not treat first position as a guarantee, since the property's value and the owner's timing still decide what you are paid.
- Ask a title company or attorney what survives a sale before you buy a deed.
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Earnings Disclaimer: United Tax Liens provides real estate education and training only. We do not guarantee investment results or income. Individual outcomes vary based on effort, market conditions, and individual skill. Investing of any kind carries risk. This content is for educational purposes only and does not constitute legal, tax, or financial advice. Consult licensed professionals before making investment decisions. |
Related Reading: Tax Lien Investing Guide | What Is a Tax Lien Certificate? | Earnings Disclosure
