How to Check for Property Liens

When you're looking into buying a property, checking for property liens should be a high priority. If a previous owner (and not necessarily just the current owner) had an unpaid mortgage, delinquent taxes or other judgment resulting in a lien on the property, you might have to shoulder the burden of those liens if you buy the property. Take the necessary steps and save yourself from potential financial headaches.

Instructions

Difficulty: Moderately Challenging

1. Contact a real estate agent or other professional for guidance and advice. Doing your own reading on the Internet and elsewhere is helpful and important, but getting a professional opinion can also assist you in wading through all the local and regional rules and regulations.
2. Get the correct address of the property. Make sure you have the exact address, or you could end up wasting a lot of time or money researching the wrong property.
3. Find the name of the current listed owner. You can do this by contacting the local property assessor or, in some cases, by consulting an official local government website.
4. Acquire the parcel number of the property. The information in Steps 2 through 4 may all be available on the Internet. Some county or local government websites include GIS programs that display a range of information about a property.
5. Request information on unpaid property taxes from the local government revenue authority. You'll need the information that you collected in Steps 2 through 4.
6. Check county records to find out if there are any property liens. This information may be available on the Internet, but it's best to go to the county or other local government office, in case some records are not yet available on the Internet.
7. Hire an attorney if you want to help ensure that you have done an adequate search for liens. If you don't have time to do any of the work yourself, this should be your first step.

Tips & Warnings

• You may want to purchase a title insurance policy to protect yourself from liens that you or an attorney may have missed during a title search. Opinions on title insurance vary widely. If you hire an attorney to do a lien search, check to see if he retains liability in case a lien is discovered.
• Undiscovered property liens can be financially devastating if someone makes a claim. Make absolutely sure that you have done all the necessary research to protect yourself.