What type of lien is placed on a property title due to the failure to pay property taxes?

A tax lien is placed on a property title specifically due to the non-payment of property taxes. When a property owner fails to pay their taxes, the government has the right to place a lien on that property as a legal claim for the unpaid amount. This serves to protect the interests of the government in collecting the funds owed and provides them a way to recover the debt, potentially leading to foreclosure if the taxes remain unpaid.

This type of lien takes precedence over most other liens, meaning that if the property is sold, the tax lien must be satisfied before any other claims against the property can be addressed. Tax liens are critical in ensuring that property taxes are collected and can affect the owner's ability to sell or refinance the property until the outstanding taxes are paid.

Understanding the nature of tax liens is important for mortgage loan officers, as it relates to the priority of claims on property and affects lending decisions. It's also crucial for property owners to recognize their responsibilities regarding property tax payments to prevent such liens from being placed on their titles.