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?
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.
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.
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.
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.
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.
Of course your house is awesome – it’s your house! But the things that you really love about your home’s decor can sometimes slow down progress when you’re trying to sell your place. Just because you’re all in on the “Halloween all year long” aesthetic doesn’t mean that potential buyers will be able to see […]
Did you know a title claim can come from a third party at any time even after you're purchased your home? Buying a home can be stressful enough and the last thing you want is to have to worry about someone coming by and claiming they have legal rights to your property. During the home […]
Fall is a little bit like a reverse spring. Everything is starting to wind down as winter approaches, and for a lot of gardeners, that’s a sad time. It doesn’t have to be, though; fall can be a time for laying the groundwork for spring plants and creating dazzling garden displays. What to Plant Fall […]
Emerald Coast Title Services, LLC
Privacy Policy | Terms of Service
