Liens against property in Alabama are legal claims that attach to real estate to secure a debt, and they come in a handful of recognizable types: judgment liens from lawsuits, county property tax liens, federal tax liens, mechanic’s liens from unpaid construction work, and assessment liens from homeowners’ or condominium associations. Each type has its own creation rules, its own place in the priority order, and its own path to removal. Any of them can block a sale, complicate a refinance, or lead to a forced sale of the property if left alone long enough.
The Main Types of Liens
Judgment Liens
When a court awards a money judgment, the creditor can record a certificate of judgment in the probate office of any Alabama county where the debtor owns land. The certificate has to include the court name, the judgment amount and date, costs, all parties’ names, the plaintiff’s attorney, and each defendant’s address.1Alabama Legislature. Code of Alabama Section 6-9-210 Once recorded, the lien attaches to all property in that county that could be seized under a court order.
The lien lasts ten years from the date of the judgment. Alabama doesn’t allow a straight renewal, but there is one way to extend it: if the creditor starts an enforcement action or foreclosure before the ten years run out and files a lis pendens notice in the probate office, the lien continues for as long as that case is pending.2Alabama Legislature. Alabama Code 6-9-211 – Judgment Constitutes Lien on Property of Defendant Miss the ten-year deadline without taking action, and the lien expires for good.
County Property Tax Liens
Unpaid property taxes create a lien automatically. No lawsuit, no separate filing by the county beyond recording it in the probate office. Alabama holds a public tax auction each year, typically on the first Monday in May, and any property with delinquent taxes that hasn’t been brought current by that date can be sold to the highest bidder.3Alabama Department of Revenue. At What Point Will My Tax Delinquent Property Be Sold for Taxes A single missed year is enough to trigger a sale.
The original owner has a redemption window after the auction. If a private buyer bought the property, the owner has three years from the sale date to redeem by paying all delinquent taxes, interest, fees, and penalties at 12% per year.3Alabama Department of Revenue. At What Point Will My Tax Delinquent Property Be Sold for Taxes If the state bought at auction, the owner can redeem any time before the state transfers title to someone else.4Alabama Legislature. Alabama Code 40-10-120 – When and by Whom Land May Be Redeemed After the window closes, the purchaser can petition for a tax deed.
Federal Tax Liens
The IRS can attach a lien to your Alabama property if you owe back federal taxes. The lien arises automatically once the IRS assesses the tax, sends a bill, and you don’t pay in time. The IRS then files a public Notice of Federal Tax Lien that reaches everything you own, including real estate, personal property, and financial accounts, plus anything you acquire while the lien is outstanding.5Internal Revenue Service. Understanding a Federal Tax Lien
Two Fresh Start paths let you get the Notice withdrawn. If you’ve already paid the debt and the lien has been released, you can request withdrawal by showing three years of filing compliance and current estimated tax payments. If you owe $25,000 or less and enter a Direct Debit installment agreement that will pay the balance within 60 months, you can request withdrawal after three consecutive payments.5Internal Revenue Service. Understanding a Federal Tax Lien Owe more than $25,000? You can pay the balance down to that threshold and then request withdrawal.
Mechanic’s Liens
Contractors, subcontractors, laborers, and material suppliers who work on an Alabama property and don’t get paid can file a mechanic’s lien against the improved property. It can attach even when the property owner never personally contracted with the claimant, which is what makes it powerful and what makes it a frequent surprise for owners.
The claimant files a verified statement of lien in the probate court of the county where the property sits. Deadlines depend on who is filing:
- Original (general) contractors: six months after the last date they performed work or furnished materials.
- Subcontractors and suppliers: four months after their last work or delivery.
- Laborers: 30 days after their last day of work.
The statement has to identify the amount owed, the nature of the work or materials, and a legal description of the property. Subcontractors and suppliers without a direct contract with the owner generally have to send preliminary notice to the owner before filing. These technical requirements are where most mechanic’s lien disputes get won or lost.
Filing isn’t the end. The claimant has to file a lawsuit to enforce the lien within six months after the debt becomes due, which usually means six months from the last day of work or delivery. If the court rules for the claimant, it can order a judicial sale.
HOA and Condominium Assessment Liens
If your community has an HOA or condominium association, unpaid assessments can become a lien on your unit. Under Alabama’s Uniform Condominium Act, the association has to begin enforcement proceedings within three years of the assessment coming due or the lien expires.6Alabama Legislature. Alabama Code 35-8A-316 – Lien for Assessments A court judgment enforcing an assessment lien can include attorney’s fees for the winner. These liens generally rank below property tax liens and previously recorded mortgages.
How Priority Is Decided
When a property has more than one lien and gets sold or foreclosed, priority decides who gets paid first. Alabama’s baseline rule is first in time, first in right, ranked by the recording date at the probate office.7Alabama Legislature. Alabama Code 6-5-248 – Who May Redeem; Priorities Several exceptions matter:
- Property tax liens come first, always. State and county tax liens take priority over every other claim, regardless of when they were recorded. This is why mortgage lenders usually escrow property taxes.
- Mechanic’s liens relate back to the date work began on the property, not the date the lien was filed. A mechanic’s lien can jump ahead of a judgment lien or even a mortgage recorded after construction started.8Alabama Legislature. Alabama Code 35-11-211 – Priority of Lien
- Mortgages rank by recording date. If two mortgages exist, the earlier one wins unless the parties signed a subordination agreement.
- Federal tax liens use the same first-in-time rule but measure from the IRS assessment date, and any competing lien has to be fully perfected under federal standards to keep its senior position.
Multiple mechanic’s liens on the same property share equal priority with each other. If a foreclosure sale doesn’t produce enough money to pay everyone, lower-priority claimants may collect nothing.
How to Remove a Lien
Paying the debt is the cleanest route. Once payment is made, the lienholder should file a release of lien with the county probate court. If the lienholder won’t file the release, the property owner can petition the court to compel it.
When the lien itself is questionable, several other options open up:
- Motion to vacate. If the underlying judgment was entered improperly or the creditor didn’t follow recording requirements, the property owner can ask the court to throw the lien out.
- Procedural challenge. Mechanic’s liens are especially vulnerable. A missed deadline, an incomplete legal description, or a failure to send required notice can invalidate the lien.
- Dispute the tax assessment. A property tax lien can sometimes be removed by showing the assessment was wrong or the tax was already paid.
- Negotiate a settlement. Creditors often accept less than the full amount to release a lien, especially when the property doesn’t have enough equity to make foreclosure worthwhile.
- Post a surety bond. For mechanic’s liens, a bond replaces the lien on the property so the owner can sell or refinance while the payment dispute continues separately. Alabama requires the bond to cover the lien amount plus interest at 8% for three years and $100 for court costs.
State tax liens recorded by the Alabama Department of Revenue are released when the liability is paid in full; there’s no partial-release option.9Alabama Department of Revenue. Liens – Alabama Department of Revenue Federal tax liens have the Fresh Start withdrawal paths described above.
Bankruptcy is a separate track. Filing triggers an automatic stay that immediately halts most creditors from creating, perfecting, or enforcing liens.10Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay Government entities can still create or perfect liens for property taxes that come due after the filing date. Bankruptcy also lets a debtor strip a judicial lien from exempt property when the lien impairs an exemption the debtor could otherwise claim. The court adds up all the liens on the property plus the exemption amount; if that total exceeds the property’s value, the judicial lien can come off.11Office of the Law Revision Counsel. 11 U.S. Code 522 – Exemptions Chapter 13 offers an additional lien-stripping option for a fully underwater junior mortgage; that tool is not available in Chapter 7.
What Alabama’s Homestead Exemption Protects
Alabama’s homestead exemption protects up to $15,000 in equity in your primary residence from judgment liens and forced sales, with an area cap of 160 acres.12Alabama Legislature. Alabama Code 6-10-2 – Homestead Exemption – Amount; Area The exemption applies to individuals, not businesses or corporations, and married couples who own jointly can double it. Important boundary: the homestead exemption does not shield your home from mortgage foreclosure or from property tax liens. It also doesn’t erase a lien on its own; what it does is limit how much of your equity a judgment creditor can actually reach, which often makes settlement the more practical outcome for both sides.
Alabama also protects certain income streams from creditor seizure, including Social Security benefits, unemployment compensation, veterans’ pensions, state employee and teacher retirement benefits, and child support. Those protections don’t remove liens either, but they narrow what a creditor can collect and shift the leverage in any negotiation to release the claim.