Posted by K.Tyler Smith on July 26, 2001 at 21:42:36:
JoeS,
Thanks for your reply. You have been a big help.
K.Tyler Smith
Title search reveals encumberances,what next? - Posted by K. Tyler Smith
Posted by K. Tyler Smith on July 26, 2001 at 01:02:46:
When you are in the midst of obtaining a three year old house and the deed in a “subject to” the first mortgage deal and the title search comes back with additional encumberances other than the first mortgage (such as a second mortgage, mechanics lien or original builder did not record a satisfaction of mortgage) what should I do next? What is the chain of events at this point? Am I correct to say that this is the seller’s responsibility to clear these additional liens ? and if so, is it up to me to point out exactly what those liens are to the seller and let him be responsible for this ? or does the title company that did the search work with the seller ?
I would appreciate any help in this matter.
Thank you,
K.Tyler Smith
Re: Title search reveals encumberances,what next? - Posted by JoeS
Posted by JoeS on July 26, 2001 at 06:49:50:
It ALL depends on the wording of your contract to buy that you signed and the seller signed. If it stated good and marketable title, free and clear of liens and encumberances, then in order to proceed with the deal, the seller has to take care of these, either now or at closing. They may already be paid, but not yet recorded as satisfied. In this case the title co. will have to confirm the validity of the liens and if they were satisfied. In most cases it is the responsibility of the home owner to record the satisfaction of liens at the County Clerk. Hope this helps.