A certificate of municipal lien is a document that lists all of the money charged to a particular property. This includes any back taxes, water charges and other assessments a municipality may place on a specific property.
When a municipality files a certificate of municipal lien, it ensures that if the property is ever transferred, the monies owed on the property are paid out of the proceeds at the closing. Also, a municipality may file a certificate of lien if it plans on starting a tax foreclosure proceeding. This lien outlines all of the outstanding monies owed on the property.