At Liberty Land Abstract (LLA), we often see unique situations in real estate closings — and one that comes up more than you’d think involves Sidewalk Liens. They’re not as commonly discussed as tax liens or judgments, but their presence can complicate deals in ways that surprise both buyers and sellers.
In New York City’s five boroughs, sidewalk maintenance falls under the responsibility of property owners—not the city. If a sidewalk becomes cracked, uneven, or otherwise hazardous, the Department of Transportation (DOT) can issue a violation. These violations may then be recorded as liens against the property in the county records.
Unlike other liens, sidewalk liens don’t typically require an immediate financial payout. Instead, they represent a potential liability: if someone is injured because of the damaged sidewalk, the property owner could be held responsible. This is why these liens matter in a transaction—they are a red flag for future risk and must be addressed before or during closing.
Traditionally, when a sidewalk lien shows up in a title search, the common fix is to hold money in escrow. On paper, this looks like a neat solution: the seller agrees to make the repair after closing, the city reinspects, and once the lien is cleared, the escrow funds are released.
But in practice, it rarely plays out so smoothly.
The result? Escrow becomes less of a solution and more of a stalled limbo. Sellers, buyers, and yes, even we as the title company, are left frustrated.
We’ve seen too many transactions where escrow funds just linger. In some cases, sellers walk away from their obligation entirely. In others, repeated inspections and new violations create endless cycles of delay. What looked like an easy workaround ends up causing more stress and potential disputes than if the issue had been properly addressed before closing.
To prevent these drawn-out, no-win situations, we’ve updated our internal protocols:
Yes, this creates more work for us. It’s faster and easier to just accept escrow, but we’ve seen enough to know that “easy” doesn’t always mean effective. By requiring sellers to actively remedy violations before closing, we significantly improve the success rate of clearing liens and protect everyone involved.
Why does this matter? Because it means:
We’ll admit it — this approach adds time and effort on our end. We’re chasing down proof of repairs, verifying DOT records, and ensuring liens are truly being resolved. But the payoff is real peace of mind for our clients, insureds, and partners.
At LLA, our mission isn’t just to close deals — it’s to close them right.