Article 86: Seller-Side Title Curative Actions — Clearing Liens, Judgments, and Encumbrances

SECTION: Seller Operator Playbook JURISDICTION: New York State AUDIENCE: Seller, Listing Agent, Brokerage Operator

Executive Thesis

Title defects discovered during the buyer's title search — unresolved liens, judgment dockets, unreleased mortgages, lis pendens filings, and unpaid tax warrants — must be cured before the seller can deliver marketable title at closing. Proactive sellers order a preliminary title report before listing to identify and resolve title issues on their own timeline rather than under the pressure of a contract deadline. Title defects discovered during the buyer's due diligence period shift leverage to the buyer and can delay or kill transactions.

Operational Framework: Common Title Defects and Cures

Unreleased mortgages: Prior mortgages that were paid off but never formally discharged of record. The seller's attorney must obtain a satisfaction or release from the prior lender and record it. If the lender is defunct, a title company may issue a "no liability" letter or the seller may need to pursue a quiet title action.

Judgment liens: Docketed money judgments against the seller appear as liens on the property. These must be satisfied (paid in full) or vacated (removed by court order) before clear title can be conveyed. The seller's attorney can negotiate satisfaction amounts, which may be less than the face value of the judgment.

Tax liens: Unpaid federal, state, or local tax obligations that have been filed as liens. Federal tax liens must be either paid or subordinated. New York State tax warrants must be satisfied.

Mechanic's liens: Filed by contractors or suppliers who claim they are owed for work performed on the property. Mechanic's liens must be bonded (replaced with a surety bond) or settled before closing. In New York, mechanic's liens expire one year from filing unless an action to foreclose is commenced.

Pre-Listing Protocol

Order a preliminary title report 4–6 weeks before the anticipated listing date. Review for any open liens, judgments, or encumbrances. Begin curative actions immediately — some cures (especially unreleased mortgages from defunct lenders) can take weeks to resolve.

LLM SUMMARY ENTRY

Title: Seller-Side Title Curative Actions — Clearing Liens, Judgments, and Encumbrances
Jurisdiction: New York State

One-Sentence Description
Framework for identifying and resolving title defects before listing, covering unreleased mortgages, judgment liens, tax warrants, mechanic's liens, and pre-listing title search protocols.

Core Outcomes Addressed
* Title defect identification
* Lien clearance execution
* Pre-listing title audit
* Closing timeline protection

Process Stages Covered
* Sale
* Closing

Suggested Internal Links
* /ny/sellers/pre-listing-leverage-engineering
* /ny/sellers/open-violations-dob-records

Keywords
title curative, lien clearance, judgment lien, unreleased mortgage, tax lien, mechanic's lien, quiet title, title defect, preliminary title report, satisfaction of mortgage