Foreclosure - Code Violations - Lis pendens

[Nikola Magdelinic]

Good afternoon to all ! 

I am analyzing 1 property which is listed on Hubzu auction. I found out that there are multiple code violations on the property and the seller (DEUTSCHE BANK) received LIS PENDENS from city Chicago which claimed  $4,500. Also, I found out that there are unpaid taxes in amount of $631 for year 2018. Square footage listed on auction is way above what is on tax records. I already contacted listing agent about that issue. 
My question is: If i buy property on this auction, am I responsible to pay for this stated above ? Please take a look at info bellow. Thanks

[Wayne Brooks]

@Christopher Phillips  Agreed, but.....title insurance can’t be issued unless the liens are cleared by the seller OR there is an exception to them in the B Section exemptions.  

The intent of offering title insurance is to offer clear title.

@Nikola Magdelinic Since title insurance is being offered, that means they intend on delivering clear title.  But.....I always advise to Not take their “free” title insurance from their title co.  They routinely do a bare bones title search only for recorded liens.  A full search will include inquiry letters to various city/county depts looking for “pending” liens....these are typically code violations, utilities, etc.  Their title co will exempt these unrecorded liens in the B Exemptions, and their title insurance is not really free....they hit you with a bunch of other junk fees.

The LP is a non issue, as along the underlying lien is cured.

Note....the fines for the code violations may be paid but of course you still have to fix the underlying problem.....here, you can’t really pay off the fines without curing the problem first....I’d try to find out the local specific procedures and maybe a lot a few thousand extra to it.