How does a “lien search” differ from a “title search”?

“Lien searches”,  also know in the settlement industry as “lien letters” , “code searches” or “muni searches” differ from  a title search.  The term  “lien search” is often used interchangeably with “title search” at times and can be confusing to the consumer .

How does a  lien search differ from a title search?

•  A lien search researches  three important areas related to the property being purchased: 1. water bills  2. open permits and 3. code violations. These three areas can have fines that can easily amount to tens and thousands and need to paid at closing.
• The lien search company checks  direct with the local municipality i.e. “City of Pembroke Pines”.  The lien search company walks in a with a letter and a check and and request information that may not be publicly recorded , but affects the property  and thus the new buyer. The county will write a letter as  response, (thus the term “lien letters”)  explaining if there are any issues with the property.
• Since lien letters often deal with issues not publicly recorded, they differ from a title search because of this. Title searches deal with only publicly recorded items, but are the crux of all closings due to large financial liens recorded this way..

Lien searches costs range from $120-$200, depending on the city the property is located in.  The service is almost always performed by a 3rd party vendor the title company selects. That expense is paid for by the buyer or the seller, depending on what the contract specifies.

Click below image to see a sample lien search!

Lien searches are worth every cent. This report can alert buyers of many potential headaches and should be a part of every real estate transaction.

For more information on lien searches, please contact us at 305-271-0100 x701 or info@theclosingcompany.net