In the current environment with so many foreclosure and REO homes, be especially careful if you are in a lien superior state - because so many previous home owners went into default, and left with known violations and/ or unpaid bills. These are liens that sometimes don't show up on the regular title search. However, you do not have to be a victim, or worry about these potential unrecorded liens, such as code, utilities, waste, and municipal liens -if you work with a professional lien search company. Most reputable title companies and attorneys also use one, so check to be sure. You should be using one in conjunction with the title search if you are in a lien superior state, especially if you are attempting to close a property outside your area. A good company currently performing this service is Property Debt Research in Florida.

Dear Nancy,

If you have never done a title search before, its very easy to overlook an important document, I would certainly recommend asking Title Search Company to perform a title search.

Clean Title really means that there are no liens against the owner or the property. You need to have a systematic approach to title search in the county office searching documents by Current Owner's Name, Legal Description, Parcel or Folio Number and Address. Remember, the recorded documents may have recording errors, pay attention to legal description and parcel numbers throughout all documents and make sure they match.

I would also recommend performing a Bankruptcy Search against current owner. You can read about Bankruptcy relevance in the Web Reference Below.

In my opinion you should never attempt a title search on your own. There are too many little cracks things can hide in. I occasionally buy properties when I can get a GREAT deal and although I know how to do a preliminary title search using the clerk of courts records I still use an attorney that issues title insurance to do the real title search.

A case in point, I was interested in a property where everything looked good at the county level and I was ready to move forward however, my attorney uncovered a US Justice Department Lien on the property far great than the property was, or ever in my lifetime be worth. That was the best money I ever spent for a title search as it saved me from loosing over $300,000!

I know of buyers who have skipped that step and have paid dearly in the end.

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate