Yes, in most cases. Liens and other registered claims are usually paid out of the sale proceeds on closing, and the seller's lawyer arranges for them to be removed from title. The sale works when the proceeds cover everything registered. If they do not, you need an agreement with the creditors, or in some cases a court order, before closing.
Finding a lien on your title can feel like the house is frozen. Often it is not. A lien mostly decides who gets paid first from the sale, and knowing the numbers early gives you room to plan.
What counts as a lien on an Ontario home?
People use "lien" for several kinds of claims. The common ones are:
| Claim | Who registers it | How it usually shows up |
|---|---|---|
| Mortgage or collateral charge (including a HELOC) | Bank or private lender | On the property's title |
| Second or private mortgage | Private lender | On title, behind the first mortgage |
| CRA lien | Canada Revenue Agency, after certifying the debt in Federal Court or getting a provincial judgment | On title |
| Writ of execution (writ of seizure and sale) | A creditor who won a court judgment | Filed with the sheriff against the owner's name |
| Construction lien | An unpaid contractor or supplier | On title |
| Condo lien | Condo corporation, for unpaid common expenses | On the unit's title |
| Tax arrears certificate | The municipality | On title |
How do you find out what is registered?
Your lawyer, and the buyer's lawyer, will do two searches:
- A title search of the parcel register through Ontario's land registry system (OnLand). This shows mortgages, liens and other documents registered against the property.
- An execution search against the owners' names. Writs are filed with the sheriff and are checked separately from title.
It is better to find these before you accept an offer. You can search a parcel register yourself through OnLand for a fee, but your lawyer should interpret it.
How liens are paid off when you sell
On closing, the buyer's money goes to the lawyers. Your lawyer gets payout statements from each creditor and pays them from the proceeds. After that, the lien or mortgage is discharged from title. You receive what is left.
A simple example: sale price $700,000. First mortgage payout $420,000, CRA lien $35,000, property tax arrears $9,000, and legal fees and adjustments of about $3,000. The seller would receive about $233,000 before any commission. These figures are only an illustration; your statements will differ.
For a CRA lien, the CRA says registering it secures the debt and establishes its priority as a creditor when the property is sold. In practice, your lawyer pays it from the sale funds before you receive the balance. The CRA says it will usually remove the lien when the debt is paid.
For a construction lien, the Construction Act sets short, strict deadlines, typically counted in days from when the work was finished, for a contractor to register a lien and then start a court action. A lien that is not followed up in time can expire. The exact deadlines depend on the contract and when it was signed, so ask your lawyer to check them. If you dispute the amount, your lawyer may be able to have it removed from title by paying money into court as security, so the sale can close while the dispute continues.
What if the sale will not cover everything?
A buyer will not usually accept title with unpaid liens still on it. If the price will not cover all the registered claims, the options include:
- Asking creditors to accept less than the full amount and discharge their claim.
- Paying the shortfall from other funds on closing.
- Negotiating a payment arrangement with the CRA or other creditors before the sale.
- Getting advice from a licensed insolvency trustee if the debts are larger than your assets.
Do this with your lawyer before you commit to a closing date. Also be careful of anyone who offers to "take over" your debts in exchange for putting the title in their name.
Steps to take now
- Ask a real estate lawyer to run title and execution searches.
- Request payout statements from each creditor and note the dates they are valid to.
- Get a realistic value for the house.
- Compare the value with the total of all payouts and selling costs.
- Choose a selling route and closing date that give your lawyer time to clear title.
If tax arrears are part of the picture, see property tax arrears and tax sales. If a mortgage lender has sent a notice, see selling before power of sale.
Sources we checked
We checked these government, court and legal-information sources on September 26, 2026. Rules and amounts can change, so confirm the details for your situation with a lawyer, accountant or licensed insolvency trustee.
Common questions
Can I sell my house if the CRA has a lien on it?
Usually yes. The CRA lien is paid from the sale proceeds on closing, before you receive any money. The CRA says it generally removes the lien once the debt is paid.
Who pays the lien when a house is sold?
The seller does, from the sale proceeds. The seller's lawyer pays the lien holder on closing and arranges the discharge from title.
How do I check for liens on my property in Ontario?
A lawyer can search the parcel register through Ontario's land registry (OnLand) and run an execution search against your name. You can also buy a parcel register yourself through OnLand.
What happens if my house sells for less than the liens?
The buyer's lawyer will not usually close with liens left on title. You may need creditors to accept less, pay the difference from other funds, or get insolvency advice. Talk to your lawyer before setting a closing date.
Can a contractor put a lien on my house in Ontario?
Yes. An unpaid contractor or supplier can register a construction lien under the Construction Act, within strict deadlines. Talk to your lawyer if you dispute the amount.
Prepared by our team for Ontario homeowners. This is general information, not legal, tax or financial advice on a particular transaction. Editorial approach and corrections.
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