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I asked the attorney who conducted a title search on a property I am the buyer on whether he conducted a lien search. His answer was no. I asked him because the title commitment mentioned liens in the exemptions.
How can I conduct a lien search?
I think this attorney represents the seller as it is customary here for the seller to pay for the title search and policy.
Not that this is directly related, but I am also having a survey completed. Assuming the survey goes as expected, I plan ask the attorney for a new "marked up" commitment at closing with standard exceptions removed. I understand if a lien search is conducted, I should be able to have that removed as well.
I suggest you go to your city or county clerk of courts and do a property search. Any liens must be recorded with the appropriate municipality to be enforceable.
Out of curiosity why would this not be done standard? Is there a way to do this online?
I would expect this be a routine process in any home/land purchase.
Whether or not you can conduct such a search online depends on your municipality. In the city I live in, I can view such information online at no charge. YMMV.
Are you paying cash or borrowing?
If borrowing, what does your lender say? Usually I would expect them to be uncomfortable with this exemption.
Are you getting a General Warranty Deed? Or, some form of compromised Warranty Deed? Or...?
What does your contract stipulate in terms of title? "Insurable and marketable title?" "..without exception for mechanics' liens and free of any other liens?"
If your contract has similar language, how can the seller deliver such title without a lien search?
Maybe others can clarify regional practices, but I, in NC, don't like the sound of what you relate....
Are you paying cash or borrowing?
If borrowing, what does your lender say? Usually I would expect them to be uncomfortable with this exemption.
Are you getting a General Warranty Deed? Or, some form of compromised Warranty Deed? Or...?
What does your contract stipulate in terms of title? "Insurable and marketable title?" "..without exception for mechanics' liens and free of any other liens?"
If your contract has similar language, how can the seller deliver such title without a lien search?
Maybe others can clarify regional practices, but I, in NC, don't like the sound of what you relate....
Cash buyer.
Warranty Deed.
The purchase agreement does state will be delivered free of liens.
One of the requirements of the title commitment says-
"A search commencing with the effective date of this commitment must be performed at or shortly prior to the closing of this transaction. If this search reveals a title defect or other objectionable matters, an endorsement will be issued requiring that this defect or objection be cleared on or before closing"
Maybe that just means it hasn't been done yet?
But correct me if I'm wrong, lets say there is a mechanics lien on the property. Would the title be allowed to transfer without it being addressed?
Cash buyer. Warranty Deed.
The purchase agreement does state will be delivered free of liens.
One of the requirements of the title commitment says-
"A search commencing with the effective date of this commitment must be performed at or shortly prior to the closing of this transaction. If this search reveals a title defect or other objectionable matters, an endorsement will be issued requiring that this defect or objection be cleared on or before closing"
Maybe that just means it hasn't been done yet?
But correct me if I'm wrong, lets say there is a mechanics lien on the property. Would the title be allowed to transfer without it being addressed?
What does "Warranty Deed" mean in your state?
"General Warranty Deed" and "Special Warranty Deed" are both "Warranty Deeds," yet are two different things in NC.
I dunno about other states.
Whenever possible, I want a General Warranty Deed.
It is up to you to enforce your contract stipulations.
Sure, if you accept liens, the seller will be glad to take your money.
Each state is different, but in a cash purchase you better believe I would have my own attorney protecting MY interests. Did you have an attorney or Realtor prepare the contract? If you used a Realtor, what do they say?
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