Do I Need To Know The Definition Of A Lien While Working With My Title Company?

Do I need to know the definition of a lien while working with my title company? Liens are debts held against the property. A title company checks to make sure that there are no debts on the property. They check to make sure that once you close on the property, you do not own any more money than you know you do. Attorneys generally fi.

Liens can come in many different forms. Most commonly, the definition of a lien is debt. A lien is an encumbrance against some property by money, either voluntary of involuntary. All liens are encumbrances. It is some debt that is owned against some piece of property. The title policy does research to what liens may be held on the piece of property. They can see what money might be owed on the piece of property. The only way to make sure that the lien no longer exists is to make sure that there is a release of lien. A release of lien is filed by who ever was holding the note, a bank, institution, or private person. They sign a statement that the money has been paid in full. Then, the statement is filed in a court house. The title company can then search and find the release. So every lien that has been filed, on that piece of property, must be followed up by a release of lien. If there is no release of lien, then those liens are listed on the title policy, and that is what we call the curative work or clouds. The liens must be settled before the buyer pays his money. This is very important for mortgagee title policy. The bank wants to be sure that all debts on the property are clear. The lender wants to be sure that all previous debts on the property have been paid, and that it has a first lien on the property.


A title company does not make liens. However, we work with them all the time. The liens come to the title company from finical institutions and lawyers. A piece of property is a very big investment. Most people do not have cash to pay. So many people have to go through some kind of financial help.




In order to file any instrument in the court house, you need an instrument to have a notary public. A notary public will swear that this person is signing the instrument in good faith right in their presence. Then when you take the instrument to the clerk at the court house, the clerk will check to make sure it is an original instrument, it has original signatures on it, and that it has an acknowledgement on it. Then, the clerk can file it. Instruments may be filed by anyone. It just needs to be properly notarized. Then they take it to file public record. Generally though, title companies, banks, and lawyers do most of the filing.

A judgment lien would be one of the encumbrances on the property that the title company would be looking for. Here is an example. I own a piece of property, and I get a new roof. However, I do not pay it off. The roofing company can protect his lien by filing a judgment lien. The company can file a lien with a notary public, and the court house can put it up for public notice. Now, someone buying my property will know, through the title company, that I have outstanding debts on my property. You can also look up property taxes and file tax suits. Title insurance provides a tax search on the property, and this will assure that the taxes are paid.

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