Lien Searches

Liens on real property can take many forms and inhibit the sale of clear title unless addressed. They can also become a priority over a mortgage lien which would hinder the lender’s ability to collect on their debt. A precise and clear title search, which looks at county and state information, is essential when considering buying a property.

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How Does A Lien Affect A Property?

To sell a property, the title must be clear. A lien attaches to a property and must be paid to sell the clear title. If a lien goes undiscovered, the creditor could choose to exercise his or her rights over the property at any time, and the new owner could end up having to pay the monies owed instead of the original debtor. Even worse, the creditor could decide to have the property sold to pay the debt and leave the new owner without a home and with a lost investment.

Carrying Out A Lien Search

By carrying out a lien search potential problems can be prevented. This involves searching the official County and State records to find any evidence of impediments to a title. The existing owner can then rectify these issues before clearing the title.

County Lien Search

County lien searches are the first step in a title search. Here we pull all county records to see what mortgages, tax liens, federal tax liens and any other liens that may exist on the title. This gives us a clear understanding of what is owed on that specific property so that we may address it before closing will occur.

Judgement Lien Search

A judgment is a lien that attaches to a specific person, however, should said person own any real estate, the lien will now attach. A judgment lien search is essential when clearing title. In NJ, the lien must be filed with the state by the creditor. It has a lifespan of 20 years and must be addressed in any sale, refinance or even foreclosure.

Municipal Lien Search

A municipal lien search is important to show what is owed on a property in that specific municipality. For example, by searching the municipality we can see if taxes have been paid current. If they have not and they have not turned to a lien, the municipal search will let us know if and when the outstanding tax amounts will become a lien. The process is known as a tax sale. Municipal liens can also give us information on items such as “vacant property registration.” This is a new ordinance that is adopted on a town by town basis. This item is becoming more of a title issue and is to be addressed before any closing can occur.