Title Search vs Title Lien Search: What’s the Difference?

A property title should be a simple thing—a document representing ownership of real estate. However, as simple as it should be, many issues can greatly complicate it. Is the name on the title the true legal owner? Are there any debts against the property? Is the description correct? We use lien and title searches to sort these issues out. This post will explore the question of title search vs. title lien search in real estate.

Title Search vs Title Lien Search: What You Need to Know

It is crucial to understand what a lien is before proceeding. A lien is a legal claim against or right to a property. Lenders may put a lien against a property if the owner used it as collateral for a debt they failed to repay. However, a lender is just one type of lienholder. A contractor could hold a lien for work the homeowner failed to pay for. The government might place a lien on a property for unpaid taxes. Court judgments can also result in liens.

The purpose of a lien is to ensure payment of the outstanding debt. It could give some lienholders the right to seize and sell the property. The lienholder may also have a right to sales proceeds to cover the debt. If a property has a lien at the time of a sale, the new owner may inherit it. Liens can severely complicate property transactions.

What is a Lien Search?

A title lien search is a targeted review of public records to identify existing liens on a property. It is typically conducted during real estate transactions to ensure there are no outstanding claims. A lien search could discover issues like mechanics, tax, mortgage, and judgment liens. It is particularly crucial for property buyers to prevent the risk of buying a property with a lien against it.

What is a Title Search?

With a title search, you have a more extensive examination of public records to ensure a title is clear. A lien search is one component of a broader title search. Beyond liens, a title search will uncover the title’s ownership history, encumbrances, easements, and legal restrictions. The search may also review and verify the property description. A full title search is typically a requirement for getting a mortgage or buying title insurance.

A lien search might be sufficient when a complete title search is unnecessary. It could be used to resolve issues with a specific lien or when taking a loan against the property. However, it is best to consult a real estate attorney when making these decisions. A full title search can still be beneficial even when one isn’t required.

Do you need real estate title services? Click here to contact First National Title & Escrow. We offer complete property title services, including comprehensive title searches. Reach out now to learn more.

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