Understanding the Ins and Outs of Property Liens

October 24, 2022

Approximately 5.64 million people purchased homes in 2020. Many of these buyers used a mortgage to buy the homes, and lenders have requirements that buyers must meet before the closing. One of these is a title search.

Lenders recommend a title search for several key reasons, which you can hire a real estate lawyer or title company to do this. But have you ever wondered what this is for and why you need it?

Title searches help buyers protect themselves when purchasing homes, by revealing all the liens on a property. So, what is a lien, and how does it affect a homeowner?

What is a Property Lien?

A property lien is a legal right someone has to a property.

The most common example of a property lien is a lender who issued a loan to a borrower. The lender places a property lien on the home until the borrower pays off the mortgage.

Construction companies can also place liens on properties, as can other entities, such as the IRS.

When someone places a lien on the property, the property owner must pay the lien when selling the property. Title companies research titles to find these liens.

Why Do They Matter to Borrowers and Lenders?

You can hire a real estate title company to find out if a property has liens, but you might wonder why you need to know. Additionally, why do lenders care?

Liens affect borrowers and lenders, as the person who owns a property is responsible for paying the lien. Therefore, lenders want to know if there are liens when issuing loans to people to purchase these properties.

You'll also want to know if you're buying a property because the lien becomes yours if you purchase the property without the seller paying it off.

When Should You Conduct a Title Search?

You can hire title agent title services to find out if a property has liens. You should consider this in several situations.

First, you should get a title search if you're buying a house. Secondly, your lender may require one if you're refinancing your mortgage or taking a second loan.

How Can a Real Estate Lawyer Help?

A real estate lawyer knows the ins and outs of property liens and can easily find them. Therefore, they become a huge asset when you are interested in purchasing a property.

You'll be in the clear if the lawyer doesn't find any liens. However, the lawyer can also sell you a title insurance policy that protects you if liens appear at a later date.

Hire a Real Estate Lawyer Today

Hiring a real estate lawyer is a great way to determine if a property has liens. Real estate lawyers know how to research property titles and can find every lien on a property.

Do you need help with lien issues? Contact us at Emerald Coast Title Services in the Florida Panhandle. We're a title company operated by real estate lawyers and can help you with the issues you're facing.

Questions? Contact Us!

Recent Posts

Refresh Your Garage This Spring

In most households, the garage serves many important purposes. It keeps your car safe from weather, theft, and other damage. It provides a storage space for your outdoor equipment and other things. In some homes it even provides a crawl space or attic access. Despite this, however, the garage is often one of the last […]

How Will Recession Affect My Home Purchase?

It’s well known that the housing market is heavily influenced by the economy — especially local economies. When the economy is strong, people have more money for large purchases and investments in real estate. When things are tighter, though, a lot of prospective homeowners may start to ask whether they’re really ready to take on such a […]

Do You Need a Water Leak Detector?

Leaks in your home can be a major problem. This is especially the case if leaks occur while you’re away from home or happen in places that you can’t easily access. While some leaks can be prevented before they happen with proper maintenance, there’s always the possibility that you’ll have a leak even if you […]

1 2 3 45

Signup for our newsletter

[wd_hustle id="email-signup" type="embedded"]

Emerald Coast Title Services, LLC
Privacy Policy | Terms of Service


Personalized Real Estate Closing Services along the Emerald Coast since 1983
@media screen and (-ms-high-contrast: active), (-ms-high-contrast: none) { .ct-text-block, .ct-headline, .oxy-rich-text, .ct-link-text { max-width: 100%; } img { flex-shrink: 0; } body * { min-height: 1px; } }

ECTS Coronavirus statement

Click Here
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram