how to read a title report and find liens on a property

property_lienholder_search Property liens aren't uncommon, but they are a bit of a hassle. A lien can block the auction of a slice of property. Learning who holds that lien is the first step in getting it settled. Lienholders can exist any entity from a construction contractor to the federal government.

In essence, the presence of a lien signals unpaid debt by the property owner. If you are the purchaser, you want to know near any legal impediment to buying the land. Knowing nigh a lien could exist the red flag that tells you to look elsewhere. Oil and gas exploration companies are interested in learning about liens against property, often requiring title searches on multiple parcels.

If you lot are a seller, the presence of a lien may be a surprise, admitting unpleasant. Sometimes a property owner is unaware of a mechanic'due south lien or a child support lien. A lien must exist both satisfied and released before a lender will provide a mortgage or the property tin exist sold. To exercise that, you lot demand to find the lien holder.

Finding the Lien Holder(due south)

Finding the lien against a single property is relatively simple. The easiest way is to look online. Property records are public and, these days can be establish by a computer search. If you don't have the name and address of the electric current property possessor, you might take problem learning about annihilation online. In that example, a visit to the local tax assessor's office or the county courthouse may be your next step. The staff can assist you locate the records.

Title companies and bank attorneys perform title searches, which will uncover liens for y'all.

Find the lien, and y'all will discover the lien holder.

Interested in learning more about property liens? Download your copy of The Lien Handbook today »

Searching for One Property

You have an choice outside of title companies and banking company attorneys if you need someone to perform a document search.

CourthouseDirect.com offers a document research service. All yous need to do is provide a research request to get a quote. Our searches uncover information about the following types of records, including some country and federal documents:

Lien records
Mortgage records
Probate records
Causeless proper noun tape
Judgment records
Mechanic's lien records
Architect's lien records

There are other records bachelor as well.

But what if you need to find out virtually multiple properties? Then you can employ a service similar that offered by CourthouseDirect.com called a Deed and Lien Run Sheet.

Deed and Lien Run Sheets

Human activity and lien run sheets are designed for an audience that includes:

Abstractors
Title Companies and Agents
Surveyors
Attorneys
Engineers
Authorities Entities
Appraisers
Banks and Lending Institutions
Document Retrievers
Oil & Gas Landmen
Individual Investigators
Right of Fashion Agents
Existent Estate Agents

Each of these professionals has reason to learn well-nigh multiple properties. To salve time, they tin can order a run sheet that includes merely those properties they are interested in.

Deed and lien run sheets provide you with everything you need to know virtually a property, including the presence of a lien. The run canvas is put together by experienced title abstractors and can be ready in 24 hours or less.

A run sheet shows the grantor and grantee for each document and a tag labeling the document type. In some cases, a link to an image of the original certificate is included. If y'all need to look at an original lien release, you may find the link on the run canvas.

Types of Liens

Liens come in several dissimilar flavors.

First mortgage
Second and third mortgages
Judgment lien
Mechanic'southward lien
HOA (Homeowners Clan) and COA (Condo Owners Association) liens
Tax liens

Mortgage liens are the most mutual and aren't the bad news most liens are. The presence of a mortgage lien just means the owner borrowed from a lender to purchase the property and is in the process of paying it back. Your purchase of the property allows the owner to do that.

A 2nd mortgage is taken out past a borrower who needs a second loan to buy or continue to pay on a dwelling. For instance, the first mortgage may have covered 80% of the purchase toll. The buyer may need a second mortgage to pay the other 20%.

Third mortgages are sometimes dwelling house equity lines of credit. A homeowner leverages the equity in the home to obtain a loan using the business firm as collateral.

Judgment liens are the result of a legal suit against a property owner for a debt. If the owner loses, a judgment lien may be placed on the belongings as collateral to ensure debt repayment.

Mechanic's liens are placed when a contractor, subcontractor, or laborer is non paid for work washed on the property. An unpaid material provider may likewise record a mechanic'due south lien.

HOAs and COAs may turn to recording a lien against the belongings of a home or condo possessor who has not paid the almanac dues.

A tax lien is simply what information technology sounds like. The owner has tax debts to pay, and the IRS or a state or local tax agency recorded a lien to guarantee payment.

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Lien Priorities

Liens are prioritized in the order they are filed at the county clerk's office. Kind of a first-come-first-served. Whatever lien payments become to satisfying the first lien on record, then it works its way downwards the list.

Since the outset lien recorded is typically the mortgage, the other lien holders must wait until the mortgage is paid earlier receiving any money. They are designated junior lien holders.

There are exceptions to that dominion. State laws differ, but some liens can be placed ahead of others. Unsurprisingly, tax liens oft become to the head of the line. Sometimes a special cess tax can sneak in ahead of the other liens. HOA/COA and mechanic's liens can as well take priority over other recorded liens.

In cases of a second mortgage, again depending on country constabulary, the 2nd mortgage lender might sue to recover the amount owed in a move called a deficiency judgment.

Finding out that at that place is a lien confronting property y'all want to sell tin be an unpleasant surprise. Before you tin move on, you lot need to go the lien released. Nonetheless, you lot need to know who owns the lien. Finding the lienholder is the commencement step in satisfying and obtaining the release of the lien.

Property Lien Guide