What occurs if unpaid liens are not settled at the time of property transfer?

When unpaid liens are not settled at the time of property transfer, they remain on the property. Liens are legal claims on assets that allow creditors to take possession of the property if the debt is not paid. This means that even though the ownership of the property may change hands, the lien continues to encumber the property, and the new owner inherits this obligation.

As a result, the new property owner may find themselves responsible for settling these debts to clear the title. This situation emphasizes the importance of conducting thorough due diligence before purchasing property, as unresolved liens can have significant financial implications. It is crucial for potential buyers to obtain a title search that reveals any existing liens to avoid unexpected liabilities after the transfer.