Performing a municipal lien search is crucial when purchasing property, especially at this time in our real estate industries history.
In many cases, there are unknown or undisclosed fees, costs or other issues that will impact a Buyer, post-closing; and could result in Liens on the real property. A common misconception is that municipal lien searches are part of a normal title search. This is Not the case.
Title Underwriters do not perform municipal lien searches, and specifically exclude these matters from their Title Policy coverage. The search is done based on the Clerk of Courts County website, in the Official Records when determining the insurability of the property.
Performing a municipal lien search will aid the Title Closing Agents in removing the standard exceptions for special assessments, service charges and waste fees from the Title Insurance Policy, thereby providing better Insurable Coverage.
Tip: Title Insurance will not cover you for unpaid property taxes, municipal liens, unpaid gas, electric or water bills; which are not known at the time of closing.
A prudent Buyer will ensure a Municipal Lien Search has been completed.