Liens are encumbrances or legal claims against a piece of property in an effort to settle an outstanding debt by taking possession of the property or by taking the proceeds should the property sell. One of the most crucial legal measures in real estate transactions is carrying out a title check, therefore ensuring that the title is actually clear of any liens. Voluntary liens, such as a mortgage, allow the lender to foreclose on the property for nonpayment. And then there are the involuntary liens, usually placed on the house by a third party such as government, business, or a creditor, without the property owner’s consent. These are the liens that pose problems for buyers in case they remain undiscovered.
Before beginning your search, you must know that various kinds of liens might exist on a property. While most are a matter of public record, a title search only locates any issues with publicly recorded liens, very likely to be a problem in selling. Nevertheless, unrecorded liens that are not satisfied will still shift to the buyer. Unrecorded liens are municipal debts that Diamond Bar investment buyers can locate through a municipal lien search, including unpaid local and federal tax debts.
Remember you are also buying the responsibility for the debt owed if there should be an existing lien, When you buy a property, which means the title is unclear or perhaps clouded. A clear title is necessary to complete a transaction to sell a property or obtain a loan on the property. Rectifying clouds on a title usually entails filing a civil action to quiet the title, such as quit-claim deeds.
We will explore how to do a lien search for Diamond Bar investment buyers.
Municipal Liens
The county property appraiser is going to provide the governing municipality with the data for the property. You must also check previous property annexations from one governing municipality to another for any liens before the annexation. You’ll also want to investigate which utility companies, like water or sewer providers, service the address. Diamond Bar investment buyers must also review governing authorities with the power to levy special assessments on the property. Now that you have the resources for the information you need, you can complete the following searches:
- Property Taxes
- Special Assessments
- Tangible Personal Property Taxes
- Utility Lien
- Code Violations
- Permit History
- Online Lien Search
Investment buyers may have access to records online to conduct a lien search for Diamond Bar property through the county clerk, recorder, or assessor’s office online. With the property address and name of the owner, you must have everything you need to execute your search. These portals are very user-friendly and are probably the best source to access this data. Before performing the search, phoning the county assessor’s office can help you understand how they perform checks for liens on property in Diamond Bar.
In-Person Lien Search
Suppose your preference is to perform an in-person lien search, Diamond Bar. If so, investment buyers might go to the assessor’s office to access the parcel number as well as the tax information for the property, and the personnel is actually familiar with the process. Feel free to request assistance in case you want guidance in performing your search, and they should be pleased to assist you. A trip to the county clerk’s office will then provide you with the history of ownership, where you can check the chain of the title or history of ownership, therefore avoiding problems with a broken chain of title down the road. You can also improve your odds of a smooth title transfer by running a public record search on each prior owner so that the records have no missing data and exactly matching names.
Third-Party Lien Search
Several third-party businesses exist online and in Diamond Bar, which offer title, property record, and lien search services for Diamond Bar investment buyers. While there is a price to dealing with a professional title company or perhaps a title abstractor, the fee includes giving the title report, which shields against unforeseen issues. This report contains all information uncovered during the title search, which includes any clouds on the title.
Title Insurance
Title insurance will be a preventative measure in case a lien search failed to discover a cloud on the title. This specific policy protects buyers from legal expenses or financial losses, given the defect is actually included in the policy. Considering that these issues can run into tens of thousands of dollars, lenders title insurance or a loan policy is paid for by Diamond Bar investment buyers and covers the lender from financial loss.
Let our experienced professionals at Casey Buys Houses make it easy! Casey Buys Houses can guide you through a lien search when buying Diamond Bar investment property. And Casey Buys Houses always has a steady inventory of Diamond Bar investment property available! Our in-house team of experts at Casey Buys Houses is ready to help you get started right now. Call Casey Buys Houses at (909) 455-9496 or send us a message today!