A title search, performed by a Florida real estate attorney, is one of the most important aspects in purchasing a residential or commercial property. This is because it is so important to make sure there are no liens on the property.
A property lien is a notice attached to a property stating that a creditor claims the owner of the property owes them money. It is typically public record and filed with the county records office or the secretary of state. It is a common method of debt collection because it is cheap and usually efficient.
If you are the buyer of a house and a title search is not done, or not done correctly, you could end up buying a house with a lien on it, thus taking on the previous owner’s debt as your own. Depending on the amount of the lien, this could bankrupt the buyer.
If you have the means, it is a good idea to do a title search before making an offer on a property, because signing your name on an offer is signing your name on a contract. If the proper adendums are not added to this contract, you could end up with a lot of problems in addition to potential liens.
By performing the title search beforehand, a professional can estimate the delays in closing on the transaction and you will not have to seek shelter in a hotel after vacating your prior house.
Additionally, you may find out that only one owner listed the property for sale, and the other owners do not want to sell. You may also find that the property is part of a tangled probate matter.
If you have questions about property liens or contract law, contact Boyer Law Firm today.