Last week we answered the question: What is a municipal search? This week we're answering the question that usually comes next: Isn't a standard title search enough?
Many people we've encountered may know what a lien search is, but may not know why it's necessary to go a step further to protect homebuyers.
They think if they're doing a title search, it should be enough to uncover any property debt or issues for the new owner. Unfortunately, that's not the case.
Isn't a standard title search enough to protect a home buyer?
Here are some reasons why a title search doesn't uncover all property issues:
- A standard title search only uncovers recorded liens.
- When PropLogix does a municipal lien search, we find those debts and issues that aren’t recorded in the public record yet, or for one reason or another, may never be.
- Not all municipalities have to follow the same recording laws in order to lien a property, and so they won't always show up on a city or county's clerk of court website of official records.
- If you aren't requesting information from the correct municipal department about unrecorded liens, current code violations or open permits, the new owner may not hold the title free and clear of all liens.
- In the case of permitting issues, a new owner may end having to pay extensive fees and fines and hire a new contractor to fix unpermitted work or finish work related to an open permit.