How House Buying Companies Handle Liens and Other Property Issues

Before you purchase a new house, whether as an investment or your primary residence, there are some critical details you should be aware of. Most importantly, what to do if a lien or other property issue arises during the process. In such cases, buyers are legally required to contact their lender or attorney prior to signing any contracts with sellers. Here is how some buying companies are managing liens and other property disputes.

Verification of Liens

If the buyer discovers that there is a lien on the property, they should address this immediately. Under California law, once recorded in real estate records, a lien becomes legally enforceable and binding. Before signing any purchase agreement with the seller, contact the lien holder to determine what action needs to be taken regarding it. Click here to discover why The Cash Offer Company is the right choice for selling your house.

Dealing With Mortgage Lien

The buyer should obtain a copy of the recorded mortgage from the county clerk’s office. They should then request a lien release from the lender or its representative after paying off the loan, which can be done by notifying their representatives and filling out forms such as “Deed of Release” or “Certificate of Release”.

Dealing With Real Estate Tax Lien

In California, there are two methods for dealing with tax liens. If the buyer intends to use the property as their primary residence, they must pay off any outstanding taxes. They can do this either through making one lump sum payment or contracting with the county treasurer for a specific payment schedule. Alternatively, if they don’t want to pay what’s owed, an acceptable substitute such as certified check or cashier’s check can be provided instead.

Dealing With Other Liens

Other liens which a buyer may face include mechanics lien, judgment lien and trust deed. In case there is a lien on the property due to construction defect or another legal issue that has not been addressed, contact creditors or their attorneys for relief. If there are multiple liens present, it would be best to consult an attorney before taking any action.

Liens to Consider

When the buyer discovers liens on a property, there are other factors to take into account. Some utilities might have liens and need to be paid off before taking ownership. They should also determine if any unpaid back taxes remain unpaid or there is a tax lien, regardless of whether those taxes are current.

Copyright ©2024 . All Rights Reserved | Context Booster