HOW TO MAKE CERTAIN NO LIENS ON PROPERTY!

13 Replies

Good evening guys!

Im fairly new to real estate as I’ve mentioned on my prior discussions. but, I’ve been learning a lot lately from BP and family/friends  who owns investment properties. 

and I was looking at a few properties yesterday on trulia and doing some analysis. My question is,

How do you make certain that the  property you’re looking at doesn’t have any liens of any kind on it?Beside word of mouth from the realtor and owner. 

I’m very concern about that guys. Specially without the experience. 

Thanks Brothers and Sisters!

🔥 away!

Do a title search. In CT the Attys do the title searches. I’m not sure about your state. It’s part of the closing process.

There are many title search companies in FL that can do this for you.  Check out Easy Title Search dot Com.  I think their O&E's are $55 per report. 

I've learned the hard way that there are generally two types of title searches. 2 Owner Search, which is what you'll be getting for under $100. Then the 40-year search, which are usually done with title insurance. 2 Owner Search checks the liens on the last two owners. For example, when I bought a CFD from Harbour, they checked that property for liens with Harbour and Fannie Mae, the last two owners. What was not picked up was the lien that was missed during the foreclosure of the third owner. That didn't show up until we tried to sell the property and had to get title insurance they did a 40-year search. That's when the lien showed up. Why didn't Fannie Mae see it? Because their attorney screwed up in the foreclosure. Why didn't Harbour see it? Because the title was transferred with a Quit Claim Deed.

So just know that going in, 2 Owner Search works, but not 100% of the time.

I think the scenario matters a lot here.  In Adams scenario, the mechanism of transfer was likely a quit claim deed done outside of escrow with no title insurance.  In that kind of scenario it is on the buyer to make sure they understand the lien situation.   In a standard real estate purchase and sale, the transaction is closed by a title company, a warranty deed is used, and the buyer would get a title insurance policy.  Title insurance is really the only way to fully protect yourself against liens that may not show up on title searches.

Okay I was told a title search as well. Wanted to confirm with the pros here. That’s a one time fee right?

Thanks sister! 

Originally posted by @Julie N. :

Do a title search. In CT the Attys do the title searches. I’m not sure about your state. It’s part of the closing process.

Great for getting feedback from a local. Thanks brother will check  them out.

Originally posted by @Chad Urbshott :

There are many title search companies in FL that can do this for you.  Check out Easy Title Search dot Com.  I think their O&E's are $55 per report. 

Oh wow what an experience! We learn from our mistakes. 

So a title search with an actual title company is ideal? Do to the fact that they’re more in depth with investigation?

Thanks Brother! Originally posted by @Adam Adams :

I've learned the hard way that there are generally two types of title searches. 2 Owner Search, which is what you'll be getting for under $100. Then the 40-year search, which are usually done with title insurance. 2 Owner Search checks the liens on the last two owners. For example, when I bought a CFD from Harbour, they checked that property for liens with Harbour and Fannie Mae, the last two owners. What was not picked up was the lien that was missed during the foreclosure of the third owner. That didn't show up until we tried to sell the property and had to get title insurance they did a 40-year search. That's when the lien showed up. Why didn't Fannie Mae see it? Because their attorney screwed up in the foreclosure. Why didn't Harbour see it? Because the title was transferred with a Quit Claim Deed.

So just know that going in, 2 Owner Search works, but not 100% of the time.

Title insurance is a one time fee correct? 

Thanks Brother!Originally posted by @Mike Hartzog :

I think the scenario matters a lot here.  In Adams scenario, the mechanism of transfer was likely a quit claim deed done outside of escrow with no title insurance.  In that kind of scenario it is on the buyer to make sure they understand the lien situation.   In a standard real estate purchase and sale, the transaction is closed by a title company, a warranty deed is used, and the buyer would get a title insurance policy.  Title insurance is really the only way to fully protect yourself against liens that may not show up on title searches.

Title Insurance costs more and takes more time. Even after my story, I'm still going to be doing an O&E search. It's just a risk of the business. Just like repeat BKers, reperforming borrowers that pay, but not well enough to sell the note, and lawsuits.

Originally posted by @Adam Adams :

I've learned the hard way that there are generally two types of title searches. 2 Owner Search, which is what you'll be getting for under $100. Then the 40-year search, which are usually done with title insurance. 2 Owner Search checks the liens on the last two owners. For example, when I bought a CFD from Harbour, they checked that property for liens with Harbour and Fannie Mae, the last two owners. What was not picked up was the lien that was missed during the foreclosure of the third owner. That didn't show up until we tried to sell the property and had to get title insurance they did a 40-year search. That's when the lien showed up. Why didn't Fannie Mae see it? Because their attorney screwed up in the foreclosure. Why didn't Harbour see it? Because the title was transferred with a Quit Claim Deed.

So just know that going in, 2 Owner Search works, but not 100% of the time.

we get full updated title on each an every loan we do or buy period.. most don't but i like you learned this the hard way about 35 years ago.. 

@Jerry Cinor Everyone else already said it, but a title search will clear that up for you. I like to use lawyers for title searches.

Okay thanks Brother!

But the insurance is a one time fee though correct? Originally posted by @Adam Adams :

Title Insurance costs more and takes more time. Even after my story, I'm still going to be doing an O&E search. It's just a risk of the business. Just like repeat BKers, reperforming borrowers that pay, but not well enough to sell the note, and lawsuits.

Okay thanks for all the help guys! All clear for me now. 

Thanks brother!
Originally posted by @Grant Rothenburger :

@Jerry Cinor Everyone else already said it, but a title search will clear that up for you. I like to use lawyers for title searches.

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