How to check for Liens

Question

Hello, I'm interested in purchasing a bank owned foreclosure property that offers a Quit Claim deed. I was told by the auction company to do my due diligence and to check for liens.  Can anyone tell me what exactly I need to look for at the county courthouse that would satisfy looking for liens? Can anyone provide a check off list?? I don't want to lose my shirt buying this property.  Thanks everyone, I appreciate it!

John Stanaway · Answer

In my county, you go to the courthouse and go into the clerk's office.  In the clerks office there is a bank of computers that you can use to look up lien information.  At my county's courthouse you can search by owner's name and by property.

Liens are not the only concern when pertaining to a free and clear title.  When you pay for a title search the company will also check deed records to make sure there are no heirs who have been overlooked who may claim rights to the property.  This is where a professional comes in handy.  While you may be able to adequately conduct the search yourself it is tedious.  At my courthouse all deed records are still hard copies.

When I hire my attorney to do a title search they in turn hire a title company who in turn sends an individual to physically visit the courthouse.  The differences is what comes with the title search.  A title company simply sends what they find with a brief summary page.  Going through a lawyer is helpful if you are inexperienced in reading these reports (I have had many title searches done and I still go through an attorney because I have questions every time).  Your lawyer will be able to answer any questions and give his/her legal opinion as to whether or not you will be able to obtain title insurance and what the likelihood of an ownership dispute may be.

At the end of the day I agree with you.  Go to the courthouse and check for liens.  If you find large liens move on or account for those in your budget.  If you don't find any, or would like to proceed in spite of liens, I would strongly advise you to have a title search done through your attorney.

Ron S. · Answer

In some counties and states...yeah. Just like the 1800s...sadly.

John Stanaway · Answer

I would highly recommend you go through an attorney.

I don't know what the average cost is but I can tell you that my attorney charges $150 total for the title search and to talk through the results.

Yes, you can typically just call your attorney and say I need a title search on property XYZ.  I usually provide them with the 911 address, any tax map information, and the owner information.

It shouldn't take any longer to get the title search done going through the attorney.  If your attorney is very busy they may not be able to go over it with you right away. I have them send the title search results by email as soon as they have them and that gives me a chance to look them over and prepare any questions I may have before I go over them with my attorney.

Auctions definitely do cause a time crunch sometimes.  I was in a hurry once for that very reason and my attorney was able to have the search rushed.  I think in that particular case it took three business days.  There may have been an additional $25 or $50 fee for the rush but I don't remember.

Wayne Brooks · Answer

You want to get a "title insurance committment". I don't know if your state typically uses title co.s or attorneys who issue title insurance for closings...use whichever one applies.

Josh Carlegis · Answer

Go to an attorney!!

Its really cheap in the grand scheme of things....Be careful on commercial title searches though.  I figured it was same as residential and walked out of that consultation $600 lighter!

Tom K. · Answer

Thanks John. Very good. Informative.  Thanks again man hope you have a good one.

Tom K. · Answer

Thanks Wayne Brooks.

Tom K. · Answer

Thanks John Stanaway, very helpful. Now John, Do you highly recommend I go thru an actual attorney? So do you say, "hey attorney, please do a title search and see what comes up"? Or do you do hire a company to do the title search then okay it with an attorney? Can you tell me the average cost to hire the attorney? I would think it would be substantially more costly and more time consuming for the attorney.  With auctions sometimes you have to move fast. Thanks John.

Tom K. · Answer

Hi Sriv, I agree however there is a way to do the lien search at the court house however I haven't been educated.  This way if the court house search comes up empty, then I can proceed to the attorney or title company to be sure.  Why go straight to the title company if I can check the court first and pull out if something substancial shows via courthouse (it's free I believe)?  And can anyone tell me if having a title company do a search for liens is the same as hiring an attorney.  I'm pretty an attorney will cost more.  Thanks

How to check for Liens

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