Understanding Liens and Judgments in Real Estate Closings
Liens and judgments can complicate the closing process. A lien is a legal claim against a property for unpaid debts, while a judgment is a court’s decision affirming that a debt is owed. These issues can arise from unpaid taxes, contractor bills, or other financial obligations.
During the title search, title companies will identify any liens or judgments against the property. If such issues are discovered, they must be resolved before closing can proceed. This often involves negotiating with creditors or creating payment plans to clear the title. Buyers should be aware that purchasing a property with unresolved liens can lead to significant financial challenges down the road.
If you have any questions regarding liens or judgments, don’t hesitate to reach out to your local Capital Title branch.