2006-11-20 00:27:58 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It depends on how you purchased the property. If you purchased it directly from the Seller, and did not have a title search done or receive a title policy at closing, you may be out of luck.
If you purchased through a realtor, and / or did have a title policy issued at closing, the the title insurer is responsible for resolving the lien issue (that includes getting a release or paying it off). I managed an escrow company in California, and I always had the Buyer read an approve the title report, even if the sales contract didn't call for it. It was our office policy that we would not handle a transaction if the parties did not want to get title insurance. And, even if for some reason a Buyer wanted to purchase the property with the lien still on the property, we had them sign release instructions relieving us of all responsibility and liability.
People are very quick to save money wherever they can; when dealing in real estate, paying a couple of hundred bucks to protect yourself is well worth the expense.
2006-11-20 01:00:31 · answer #1 · answered by Le_Roche 6 · 2⤊ 0⤋
There are a lot of different scenarios, some of which are covered here, some that aren't. (btw, to the above posters, there is a lot of good info up there!) One that I don't see is whether or not this property was a foreclosure. If, for example, you bought the property at a foreclosure sale, then any liens would be wiped clean as long as the lienholders were properly notified of the foreclosure. Also, some liens are only valid for a specific amount of time, depending on the type of lien and the location you're in.
I really want to help on this one, but in truth, I need more info. How is this property purchased, cash or loan? Did you obtain title insurance? What type of lien (i.e. tax lien, mechanic's lien, etc.)? How long ago was the lien filed? What state is the property located in? Let us know =)
2006-11-20 04:41:04 · answer #2 · answered by Sithein 3 · 2⤊ 0⤋
The lien is paid out of the sellers proceeds at the closing. When you purchase a home you are required to obtain title insurance. This would protect you against any liens showing up after the sale.
Here is some additional info. Hope this helps.
2006-11-20 02:47:01 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Okay, it depends on when you discovered the lien, and whether you were represented at closing by an attorney, and whether you got title insurance, and whether the contract calls for the title to be clear of liens, and what kind of lien it was.
If it's discovered before closing, you can insist that it be paid at closing.
If it was discovered after closing, the first question is whether the contract gives you the right to have the property free and clear. If not, kick yourself for not having an attorney look at it.
If it does, the next question is the type of lien. If it's a mechanic's lien that was filed after closing, the seller signed an affidavit that no one could file one of those, and will be required to clear it. Kick yourself if you didn't have an attorney.
If it's the mortgage that was supposed to be cleared at closing, bear in mind that it takes 3 to 8 weeks for the lenders to get around to releasing liens. If you have assurances that it was paid, but still isn't released after two months, follow up with your attorney. If you didn't have one, get one to follow up on it. Lenders aren't going to talk to you about someone else's mortgage.
2006-11-20 00:57:10 · answer #4 · answered by open4one 7 · 1⤊ 0⤋
If you didnt go through a licensed professional and you did not get title insurance and you didnt close the transaction with a title company or attorney, then you can look forward to inheriting the lien which has to be paid. If you do it properly when you get to closing the title insurance you have ordered on the property will demand that the lien be paid from the proceeds that you tender at closing. The proceeds to pay the lien will be taken from the seller's proceeds that they were to receive.
Buena Suerte
2006-11-20 00:36:42 · answer #5 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
This Site Might Help You.
RE:
what happens if you buy a house that has a lien on it?
2015-08-18 15:06:36 · answer #6 · answered by Umeko 1 · 0⤊ 0⤋
It's history. The bank's lien was undoubtedly prior to yours, and foreclosing on a senior lien wipes out all the junior liens. You now have an unsecured claim against the former owner.
2016-03-14 02:02:28 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Wouldn't your lawyer have spotted that before closing? Most people still have liens, an outstanding mortgage is a lien, which would have to be satisfied before title could be passed to you to complete the sale.Until that happens, the sale is incomplete.
2006-11-20 00:38:09 · answer #8 · answered by Bob D 6 · 1⤊ 0⤋
Most liens affecting title must be paid off for the property to be conveyed to the new owner. Whatever is owed will be deducted from the sales proceeds...make sure that Seller pays it off....
2006-11-20 05:16:44 · answer #9 · answered by boston857 5 · 1⤊ 0⤋
Get a lawyer and sue the escrow/title company...they should have researched if there were liens.....But the money the seller would recieve....if any.... would be held to pay the lien holder.
2006-11-20 00:37:09 · answer #10 · answered by Anonymous · 1⤊ 0⤋