Welcome @Account Closed I missed your previous posts to say hello.
In doing a bigger deal, you may want to dig a little on a seller, especially in a business entity. Search the entity as they will need to be in good standing to convey but also look for contingent liabilities as Adam mentioned.
After conveyance of title you should be in the clear as any judgment after the sale usually can't touch you, unless there were issues unique to that property and there should be, a final clearance on title prior to filings to avoid last minute claims.
I'd say the biggest issue will be from new construction or repairs being made to a property within the time frame allowed to file workman's and material liens. Such items again need to be addressed as representations in your contract to survive settlement. Such are exceptions in title insurance and can't really be covered by a search so that means you need a good attorney, like Adam or Jerry, to call on. It's part of the risk accepted in dealing in RE. :)
Interesting question. I'm not sure if this is because you have identified a particular property that is suspect or if you are attempting to create a due diligence task prior to acquisition.
Simple answer: if active litigation concerns this property, the moving party's attorney will usually record a Lis Pendens (Notice of Pending Litigation) which references the subject property. This gives constructive notice to anyone interested that a lawsuit concerns this property. Title companies will not offer marketable title insurance until the LP is withdrawn or removed.
Since your question did ask about 'potential' litigation, as well, I suppose you could let your imagination go wild. Slip and fall? Code enforcement? Environmental compliance? Drug house ('In Rem' confiscation)?
Unless there is a lis pendens, litigation isn't typically an issue because bona fide purchasers take the property free and clear of claims of which they don't have notice. Other than calling up the owner and asking or getting a rep/warranty about claims, not sure there's any good way to find out about potential claims. unless the potential litigation involves title, you should be fine. For pending litigation, many courts have online databases that you can search for litigation involving the owner. Try the county where the property is located or the owner's registered agent is located.
When I get title insurance the commitment also has a check run on the county where the property is located for lawsuits involving the named owner. It would also show any Lis Pendens or liens filed on the property as well.
Welcome @Account Closed I missed your previous posts to say hello.
In doing a bigger deal, you may want to dig a little on a seller, especially in a business entity. Search the entity as they will need to be in good standing to convey but also look for contingent liabilities as Adam mentioned.
After conveyance of title you should be in the clear as any judgment after the sale usually can't touch you, unless there were issues unique to that property and there should be, a final clearance on title prior to filings to avoid last minute claims.
I'd say the biggest issue will be from new construction or repairs being made to a property within the time frame allowed to file workman's and material liens. Such items again need to be addressed as representations in your contract to survive settlement. Such are exceptions in title insurance and can't really be covered by a search so that means you need a good attorney, like Adam or Jerry, to call on. It's part of the risk accepted in dealing in RE. :)
LOL, @Account Closed no, let's not really do that, it's the rest of the exam I'd have issues with. I hope I know enough to know when to pull my neck back into my shell. :)
I know you guys are busy, but jump in with your opinions! :)