Municipal Lien Certificate Explained
A Municipal Lien Certificate (MLC) is a legal document issued by a city or town’s tax collector that lists every tax, assessment, water charge, and other municipal fee that is currently a lien on a specific parcel of real estate. In a Massachusetts real estate transaction, the MLC tells the buyer’s attorney exactly what the seller owes the municipality — and confirms that the title will transfer free of those charges once they are paid at closing.
How It Works in Massachusetts
The MLC is governed by M.G.L. c. 60, §23. Under that statute, the tax collector for any city or town with more than 5,000 inhabitants must, on written application by any person, furnish a certificate of all taxes and other assessments — including water rates and charges — that constitute liens on the specified parcel. The collector has ten business days (excluding Saturdays, Sundays, and holidays) to respond.
Once issued, an MLC may be recorded at the Essex County Registry of Deeds (or the relevant Registry) within 150 days of its date. When recorded within that window, it operates to discharge the parcel from all liens that do not appear on the certificate — with limited exceptions for liens where evidence of a tax taking or sale has already been recorded, or where a statement preserving the lien has been filed under law. Recording the MLC does not eliminate the personal liability of anyone who owed the underlying tax; it removes the lien from the land itself.
Because Massachusetts is an attorney-closing state — under REBA v. NREIS (2011), a closing involving a mortgage must be conducted by an attorney — it is the closing attorney who orders the MLC, reviews it, and ensures that all amounts shown are paid or credited at closing.
What the MLC Covers
The MLC is the only reliable way to confirm the correct amounts owed to the tax collector for municipal charges on a given parcel. A typical Beverly MLC will show:
- Real estate taxes — all fiscal years with outstanding balances, including accrued interest and costs
- Water and sewer charges — unpaid utility balances that have become liens on the property
- Special assessments — betterment charges for sidewalks, sewers, or other public improvements assessed against the parcel
- Municipal charges liens — other local fees or charges that the city has voted to lien under M.G.L. c. 40, §58
- CPA surcharge — any unpaid Community Preservation Act surcharge amounts
The MLC shows total balances. If you need a breakdown by quarter or fiscal year, some municipalities charge a small additional fee for a payment history report.
Why the MLC Matters at Closing
Property tax liens in Massachusetts attach to the land on January 1 of the year of assessment and run with the property — not with the owner. If a seller has unpaid taxes, those taxes remain a lien on the parcel after the deed is recorded, and the new owner inherits the problem. The MLC protects the buyer by making the full lien picture visible before the deed changes hands.
At a typical Massachusetts closing, the attorney uses the MLC to:
- Calculate the exact tax proration between seller and buyer
- Identify any outstanding water or sewer balances that must be paid at closing
- Confirm that no tax takings or sales have been recorded against the parcel
- Satisfy the title insurer’s requirement for a clean municipal lien picture
After closing, the attorney typically records the MLC at the Registry of Deeds. The Registry charges a recording fee per its standard fee schedule — one Massachusetts real estate attorney source notes the recording fee is approximately $85, though the exact amount should be confirmed with the Essex County Registry of Deeds or your closing attorney, as fees are subject to change.
MLC vs. Title Insurance: Two Different Protections
The MLC and title insurance serve related but distinct purposes.
| Municipal Lien Certificate | Title Insurance | |
|---|---|---|
| What it covers | Municipal taxes, assessments, water/sewer charges | Defects in title, undisclosed liens, forgery, errors in public records |
| Who issues it | City or town tax collector | Title insurance company |
| When it is used | Every sale and most refinances | Every purchase (owner’s policy); every mortgage (lender’s policy) |
| Cost | Municipal issuance fee [VERIFY: Beverly’s current MLC fee per parcel] + Registry recording fee | One-time premium at closing |
| Ongoing protection | Snapshot at a point in time | Ongoing for owner’s policy |
The MLC tells you what is owed to the municipality right now. Title insurance protects against claims that arise later — including claims that predate the closing but were not visible in the public record at the time. Both are typically used together at a Massachusetts closing.
How to Request an MLC in Beverly
In Beverly, MLC requests go to the City Collector of Taxes at City Hall, 191 Cabot Street, Beverly, MA 01915. A written request must identify the property by address and map/parcel number. You can look up the parcel number in Beverly’s online property database at beverlyma.gov/City-Assessors.
[VERIFY: confirm Beverly’s current MLC issuance fee per parcel and whether online or email requests are accepted, by contacting the Beverly Collector of Taxes at beverlyma.gov/Collector-of-Taxes. Massachusetts collectors typically charge between $25 and $50 for the certificate itself, but Beverly’s specific fee was not confirmed from a live source at time of drafting.]
The collector has ten business days to respond. In practice, many Massachusetts municipalities turn around MLCs in three to five business days during normal volume periods, though high-volume periods — typically around fiscal year-end — can push processing to the statutory maximum.
Who requests it? In a purchase transaction, the buyer’s closing attorney orders the MLC. In a refinance, the lender’s closing attorney orders it. Sellers do not typically order the MLC themselves, though any person may apply under the statute.
When is it ordered? The MLC is usually ordered shortly after the Purchase and Sale Agreement is signed, so the attorney has it in hand well before the closing date. Because the MLC is valid for 150 days from issuance if recorded, timing matters — an MLC ordered too early may expire before the closing.
A Note on Subdivision Plans
Under M.G.L. c. 60, §23, no Register of Deeds may accept a definitive subdivision plan for recording unless it is accompanied by a municipal lien certificate showing that all taxes, assessments, and charges against the land have been paid in full. This requirement applies to subdivision plans specifically; it does not apply to ordinary deed recordings.
Last verified: 2026-08-18. Statutory citations verified against M.G.L. c. 60, §23 via malegislature.gov.
FAQ
What is a Municipal Lien Certificate?
An MLC is a document from the city or town tax collector listing every tax, assessment, water charge, and municipal fee that is currently a lien on a specific parcel. It is required at virtually every Massachusetts real estate closing to confirm what the seller owes the municipality before the deed changes hands.
Who orders the MLC in a Massachusetts closing?
The closing attorney orders the MLC — the buyer’s attorney in a purchase, or the lender’s attorney in a refinance. Massachusetts is an attorney-closing state, and under REBA v. NREIS (2011), a closing involving a mortgage must be conducted by an attorney.
How long does it take to get an MLC in Massachusetts?
The tax collector has ten business days under M.G.L. c. 60, §23 to respond to a written request. Many municipalities turn around MLCs in three to five business days during normal periods, but high-volume times — such as fiscal year-end — can push processing to the full statutory limit.
How long is an MLC valid?
An MLC may be recorded at the Registry of Deeds within 150 days of its date. If recorded within that window, it discharges the parcel from all liens that do not appear on the certificate, with limited exceptions. An MLC that is not recorded within 150 days does not carry that lien-clearing effect.
Does the MLC replace title insurance?
No. The MLC covers only municipal charges — taxes, assessments, and utility liens owed to the city or town. Title insurance covers a much broader range of title defects, including undisclosed liens, errors in the public record, and claims arising from forgery or fraud. Both protections are typically used together at a Massachusetts closing.