Regardless of who or where you are in the home buying process, a lien could cause problems. However, checking for liens on a property may not be as difficult as you think. It is absolutely essential to practice due diligence and check for any type of property lien before entering the buying or selling process.

What is a Property Lien?

A property lien is a legal claim against you. Giving creditors a way to collect debts against you, a lean on your property is a way to take back the stake from your accounts. As a legal claim, a property lien comes in two forms.

  1. Voluntary

In the case of a voluntary lien, a homeowner agrees to the claim in a similar way as they would a mortgage. Usually, there is also a written contract or at least a clear verbal agreement to the lien that may or may not carry a penalty for violations.  

  1. Involuntary

If a claim is placed on a homeowner against the property as a lien, it is called involuntary. If there are any unpaid debts you have, including those to Federal agencies like the IRS (Internal Revenue Service), a property lien may be applied. Against your will, financial obligations, like unpaid taxes, can affect not only your property’s public record but also your ability to sell it easily.

How to Check for Liens on a Property

When you need to start the process checking for liens on a property, it is important to get organized. Because property liens are considered public records, the answers to your questions may be easy to find. However, to find out if there are any liens on the property you are looking for, there is an option to follow this simple list.

How to Check for Liens on a Property in 3 Steps:

  1. Search

You need the name of the property owner, the address, or if you do not have that information, the county recorder, clerk or assessor’s office may have the data online.

  1. Visit

Go visit an office in person to get help and pointers if you need them.

  1. Contact

Call a representative of the title or the lien company directly. Having a title representative may also be beneficial.

Talking About Removing a Property Lien

If you want to know the answer to the following question, “How do I find out if I have a lien against me?” follow this short list. Then, call the office of Jeff Barchi to speak with a member of the team about the next steps towards removing the claim against your property.

Usually, a voluntary lien on a home is not a problem for the title, and a loan may still be paid off during the closing process. Involuntary property liens like those applied through government holders (IRS) will release automatically when the debt is paid.

Obtaining a property lien release for other purposes like child support, mechanics, and loans, may need to be done manually. This process varies for different liens, and thus, you may need to check to see if a notary is required.

propery lien

Practicing Your Due Diligence

Learning how to find out if there is a lien is part of property ownership. Oftentimes, a property lien comes as a surprise to the seller or buyer, and depending on how the home is purchased — numerous clouds could be looming overhead. Because not everyone plays the housing market fairly, you cannot count on someone’s word.

Always practice your due diligence and check to make sure you are following the best course of action!

A property lien search is easy to perform when you have the support of qualified real estate agents in Scottsdale. Call us if you have any questions about how to check for liens on a property. It can give you the peace of mind you need.