What happens when a title company misses a lien?

Recently we had several different clients come to us with a common problem: a title company had missed a lien when they refinanced their property.

What happens when a creditor puts a lien on your property?

If a creditor gets a judgment against you, it can then place a lien on your property. The lien gives the creditor an interest in your property so that it can get paid for the debt you owe. If you sell the property, the creditor will be paid first before you receive any proceeds from the sale.

Can a contractor file a lien against a home?

In order to get paid, the contractor must sue the homeowner in the Superior Court after the lien is filed and within one year of the date that the contractor was last on site. Only after filing a NUB and completing arbitration, may the contractor file a residential construction lien.

Can a lien be attached to a property title?

In simple terms, a property lien is something a creditor can attach to a property title that says you owe them money. Until you pay that debt, your title won’t be considered clear, which means you can’t refinance or sell your property. There are two types of liens:

Can a contractor file a lien on your property?

If you are the owner of a piece of real estate, you will never be pleased if a contractor, subcontractor, or supplier files a lien on your property. In most cases, homeowners will feel that the subcontractor should simply work out the dispute with the general contractor, or that the general contractor is not entitled to any more money from you.

When does a federal tax lien need to be filed?

The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after: Neglect or refuse to fully pay the debt in time. The IRS files a public document, the Notice of Federal Tax Lien, to alert creditors that the government has a legal right to your property.

When do you place a lien on a property?

When you record a lien against the judgment debtor’s property, you have notified the world that the property owner owes you money. The lien attaches to the legal title of the property. No law requires that liens be removed before title to property is sold or transferred.

Can a judgment lien be attached to real estate?

In every state, a judgment lien can be attached to the debtor’s real estate — meaning a house, condo, land, or similar kind of property interest. And some states also allow judgment liens on the debtor’s personal property — things like jewelry, art, antiques, and other valuables.

What happens when you sell a property with a lien?

Selling Property That’s Encumbered by a Lien. If you are planning on selling property that has a lien on it, it is unlikely that the sale will close unless the debt is taken care of. A buyer will expect liens to be paid to allow for a transfer of clear title.

Can a title be sold with a judgment lien?

Satisfying the judgment is the best assurance that the title is lien free. The only exception to this rule is if the seller is given an opportunity by the title insurance company to execute a “Not-Me-Affidavit” swearing that the name of the person on the judgment lien is not them.

What kind of lien can I get on my house?

Mechanical/contractor liens: Mechanical liens result when homeowners hire contractors to perform home improvement projects, but fail to pay them for their services and materials. Tax liens: Tax liens are filed due to unpaid taxes, including local property tax liens and those filed by the IRS for missed federal tax payments.

Can a title company overlook a lien on a house?

Although rare, sometimes title companies overlook liens on a title. When the deal closes, the title and the liens transfer to the new owner. Title insurance protects you from paying liens that aren’t yours.

Recently we had several different clients come to us with a common problem: a title company had missed a lien when they refinanced their property.

Can a lien on a property be removed?

If the lien on your property is security for a debt that you owe, you will not likely avoid paying the debt. Even if you were able to get the title company to pay off the lien to get it removed, they would have a “subrogation claim” against you for whatever they pay.

What does it mean to have a lien on a house?

A lien is a right to keep possession of a person’s property until a debt is paid. Like blemishes on an otherwise shining report card, liens are one of the defects that show up on a property’s title search, which is essentially a background check into your legal claim over a piece of real estate.

Can a judgment lien affect the title to a property?

All Judgment Liens do not affect the title to real property, however. If the judgment is against the property (in rem), then it will affect the title. If it is against the individual (in personam), then it won’t affect your property.

Can a buyer file a claim against a title company?

An attorney experienced with easements will ask questions the buyer might not have anticipated. If the title policy fails to disclose a properly recorded easement, the home buyer can file a claim against the title company for failing to find it. The seller may be at fault for agreeing to, but not disclosing, an easement.

Why did Stewart Title Company sue their title agent?

Stewart sues for breach of contract due to negligence After Stewart settled the title claim with BNC, a lawsuit was filed against their agent for breach of contract, claiming Residential was negligent in their title search.

Can a title company pay for a disputed property?

It could also be a situation where a neighbor put up a fence on your land. The title company may attempt to acquire the disputed property on your behalf, pay you the value of the property lost [3] or pay you for the diminution in value of your property.

How to clear a mysterious lien when trying to sell a home?

You can then use the Internet to track back whether the lender listed on his title is, in fact, the same lender. Assuming it is the same lender and the lender is now out of business, you may need to help your friend find his documentations from the loan and collect other proof that he has paid off the note.

Can a title search include unpaid property taxes?

Every title search needs to include a search for unpaid liens that includes property taxes. That’s just the facts of the matter. However, this does not relieve you of your duty to pay those taxes in full and on time. If it was an obscure mechanics lien recorded against your property erroneously for work that was never done, you’d have a great case.

Do you need title insurance if you have a lien on Your House?

Most buyers get title insurance when they purchase a home. This is to protect them from any liens that may be on the title under a previous owner of a home. Although rare, sometimes title companies overlook liens on a title. When the deal closes, the title and the liens transfer to the new owner.