Should I Buy A Florida Home With A Lien On It?
A lien is a claim made against assets, such as a home or a vehicle to ensure that a debt is paid. For example, manufacturer’s liens are commonly placed on new homes to ensure that the construction crew who made the home is fairly compensated. The home (or other asset) is collateral, and if the debt is not paid, the home may be foreclosed upon and sold in order to pay it off. If you are searching for a new home and you discover one or more liens on the property, it is crucial that you investigate before making a serious offer. The right attorney can help.
Seller Must Disclose Liens
There are multiple types of liens that may be placed on a home, though manufacturer’s liens are the most common. Most are self-explanatory: for example, a mortgage lien means that the home has been used as collateral to cover a mortgage, while a tax lien means that the homeowner has unpaid state or federal taxes. A judgment lien is perhaps the most significant; the existence of one on a property means that a judgment has been obtained in civil court against the homeowner, and in order to pay off the judgment, the home may be sold.
Regardless of the type of lien, though, its presence on the property record can cause significant time and trouble to a potential buyer. A simple title search should make the buyer aware of any issues – but while state law generally requires a seller to clear any liens before the property can be sold, it is not uncommon for a seller to simply try and obfuscate. The doctrine of merger holds that the terms of a real estate contract merge into the deed once a sale is concluded and the deed delivered – and if a buyer does not discover the existence of a lien until that point, their recourse is limited.
Do Your Own Title Search
Just as there are many types of liens, there are many ways by which a seller can cure the liens before selling the property. They may simply pay off the debt, if they are able; they may sometimes be able to negotiate, or, if necessary, they may have to file litigation to get it cleared. If they are unwilling or unable to do this, it may be best to pursue another piece of property, simply because any liens not paid off will come with the deed; they will become your responsibility if the seller decides to conceal the truth.
While most sellers can be trusted to be transparent, it is always a good idea to conduct your own title search, or have your attorney do so. Liens are usually a matter of public record, meaning that they are discoverable in public records, such as the state or federal tax office’s websites, or your county assessor’s office. Doing your due diligence can help you rest easier, and may get you closer to your dream home, knowing that there are no potential financial pitfalls that can appear at a later date.
Call A Tampa Real Estate Attorney
It can be easy to get caught up when you fall in love with a property, but failing to investigate the title first can lead to heartbreak. A Tampa real estate attorney from the Seward Law Office can help to advise you as to your best course of action. Contact our office today at 813-252-6789 to schedule a consultation.
Source:
casetext.com/case/southpointe-dev-v-cruikshank
