As the homeowner, you\u2019re responsible for clearing property liens before you sell. Open liens could affect your home sale because a new owner would become responsible for the property debt if you sell a house with a lien<\/a>. Also, a title insurance company will exclude coverage for any liens that cloud, or negatively affect, the property\u2019s title.<\/p>\n And since there\u2019s a chance that you could have a lien on your home that doesn\u2019t belong there \u2014 such as a mechanics lien for contractor work you\u2019ve since paid for \u2014 it would be worthwhile to resolve these potential title issues before a buyer gets involved.<\/p>\n To learn about the process of finding property liens, including how to search for liens yourself, we spoke with two pros with field expertise in the matter:<\/p>\n Charity Murow is an Illinois-based senior underwriting counsel for Proper Title<\/a>.<\/p>\n Rick Ruiz<\/a> is a seasoned real estate agent and single family home (SFH) expert \u2014 working with over 70% more single family homes than the average Las Vegas agent.<\/p>\n A title search<\/a> investigates a property’s ownership and may reveal the existence of what\u2019s referred to as a cloud, or title inconsistency. This often unexpected discovery could throw a wrench into your home sale.<\/p>\n According to an August 2021 survey by the National Association of Realtors (NAR), title and deed issues account for 11% of delayed sales contracts<\/a>. An early title search allows you to resolve complications ahead of time for a smoother sale.<\/p>\n Title insurance companies require a title search before issuing a policy, and a title examiner completes a full search before the sale of a home. According to title and escrow company Endpoint, a complete title search encompasses more than property liens, and may involve<\/a>:<\/p>\n If you aren\u2019t planning to sell soon, but you\u2019re curious about what liens you have on your property, you could opt for an informal public records lien search.<\/p>\n Depending on your county or local municipality, you may be able to search for public records<\/a> without leaving your couch. In Las Vegas, for example, Ruiz explains how easy it can be to find property records online<\/a>. \u201cWe’re a very open record state \u2026 You could literally go on our [county] website and pull up my deed.\u201d And in areas like Clark County, Nevada, it\u2019s free to search public records online<\/a>.<\/p>\n Murow says that while homeowners may find it convenient to search an online portal, \u201cthere’s obviously no assurance that it\u2019s a proper chain of title.\u201d And online public records aren\u2019t always as up to date as the databases that title companies<\/a> can access. Citing the pandemic, Murow points out that \u201ca lot of recorder\u2019s offices were closed for a while, so there was a very large lag in recording.\u201d<\/p>\n You can also view public land documents, including recorded liens, by visiting the local records office, which often allow in-person searches. In the state of Maryland, for example, every county\u2019s circuit court houses a Department of Land Records<\/a>. While you can search the public records for a property within the county, you\u2019ll do so on your own \u2014 clerks can\u2019t perform a title search on your behalf.<\/p>\n Inquire with your local records office for office hours and search fees. In Maryland, it\u2019s free to search and view a document, but the cost for a copy is $0.50 per page.<\/p>\n Your local title representative may be willing to conduct a preliminary title search. Availability varies depending on your location and the individual title company. Ruiz says that title offices in his area will often provide a free preliminary title report<\/a> to homeowners.<\/p>\n According to Murow, homeowners could also request an abbreviated search through a title company that offers the service. Called a tract search, the report shows taxes and recorded liens against a property. While the cost varies, you can expect to pay in the $150 range, depending on how much work is required.<\/p>\n For example, if the property is in a county that requires an in-person search, the cost would be higher. The tract search isn\u2019t as comprehensive as a preliminary title search, but may be an option if your local title office doesn\u2019t offer preliminary title reports directly to homeowners.<\/p>\n If you\u2019re planning to sell soon, Ruiz recommends hiring a professional to conduct a preliminary title search on your property rather than taking on the task yourself. That way, you can resolve unexpected liens before a buyer comes into the picture, which could put your home sale at risk.<\/p>\n Murow agrees. \u201cReviewing a chain of title is really a science, so I would recommend leaving it up to the professionals,\u201d she says.<\/p>\n Murow emphasizes that title search procedures can vary depending on both your state and the title company working on your behalf. Since a single database for all property liens doesn\u2019t exist, professional title researchers exhaust multiple sources to uncover potential title issues. At Proper Title in Illinois, Murow reveals that title researchers use specialized software<\/a> to conduct three types of inquiries:<\/p>\n Chain of title<\/a> includes the examination of public records to determine whether another person or entity has prior ownership claims to a property. Examples include previous title transfers<\/a> and property liens.<\/p>\n If the title search unearths discrepancies \u2014 for example, the person who signed the previous title transfer was not the owner of record \u2014 legal ownership of the current owner could be called into question. Another common chain of title discrepancy includes old liens, such as mortgages, that the homeowner paid off and the lender failed to release.<\/p>\n Depending on your property\u2019s location, you\u2019re responsible as the homeowner for paying local taxes and assessments. When unpaid, this involuntary lien<\/a> becomes a lien on the property. The title search determines the outstanding amount due, if any.<\/p>\n A public records search on a property itself doesn\u2019t always uncover every title issue. With a name search, the title researcher investigates whether the current homeowner has any outstanding legal judgments, pending litigation, and other liens that could affect the property.<\/p>\n According to Ruiz, previously paid off mortgage loans are the most common unexpected title liens that crop up. Old loans can show up on title if the lender doesn\u2019t properly release its interest. To clear the lien, the lender typically records a deed of reconveyance<\/a> after the homeowner pays off the debt.<\/p>\n \u201cMany times, that [release] is not done properly, and it’s not until somebody goes to sell or someone goes to refinance that they find out that it wasn\u2019t done properly,\u201d Ruiz explains.<\/p>\n A settlement representative working on your behalf \u2014 which could be an attorney or escrow officer, depending on your state \u2014 will assist with clearing title liens for the purpose of obtaining title insurance. Here\u2019s how you can resolve property liens with the help of a settlement rep:<\/p>\n If the lien doesn\u2019t belong to you or your property but the lienholder insists that you owe the debt, you may need to consult an attorney<\/a> and take legal action.<\/p>\n You\u2019ll need to pay off the balance and obtain a lien release<\/a> from the creditor prior to closing.<\/p>\n Give a copy to your settlement rep to review. In some cases, sufficient documentation of payment may be enough to obtain a clear title insurance policy. If not, you\u2019ll need to contact the lienholder and obtain a lien release.<\/p>\n What happens if you lose or misplace the payoff documentation and can\u2019t reach the original lienholder? Depending on the situation, Murow says potential resolutions could include:<\/p>\n \u201cWe can get pretty creative in terms of how we can handle liens that weren’t properly recorded,\u201d Murow explains.<\/p>\n Professional title searchers and examiners aren\u2019t faultless. Whether a clerk improperly indexed a lien in the local database or misspelled the owner\u2019s name on a document, a valid lien could slip through during a title search. And that\u2019s where title insurance steps in.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/10\/how-to-find-liens-on-property-666x381.png\")
<\/a>Title search: How to check for property liens<\/h2>\n
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Browse public records for an informal lien check<\/h2>\n
Search public records online<\/h3>\n
Delve into public records in person<\/h3>\n
Hire a pro for a preliminary or abbreviated title search<\/h3>\n
![\"People](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/10\/how-to-find-liens-on-property-1-666x381.png\")
<\/a>If you\u2019re selling, consider hiring a professional title search company<\/h2>\n
How a professional title search works<\/h3>\n
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Chain of title<\/h4>\n
Taxes and assessments<\/h4>\n
Name search<\/h4>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/10\/how-to-find-liens-on-property-2-1-666x381.png\")
<\/a>Unexpected lien on title? Here\u2019s how to resolve it before you sell<\/h2>\n
If the lien isn\u2019t valid<\/h3>\n
If it\u2019s a valid lien, and you haven\u2019t paid off the debt<\/h3>\n
If you paid off the debt and have documentation to prove it<\/h3>\n
If you paid off the debt, but can\u2019t prove it<\/h3>\n
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Title searches aren\u2019t 100% foolproof \u2014 that\u2019s why title insurance exists<\/h2>\n