Liens are legal claims placed on a property to satisfy outstanding debts, often resulting in the property being taken or its proceeds used to settle the debt. When conducting real estate transactions, one of the most important steps is performing a lien search through a thorough title check to ensure the property is free of any liens. Voluntary liens, such as a mortgage, give the lender the right to foreclose if payments aren’t made. Involuntary liens, on the other hand, are placed without the property owner’s consent—typically by creditors, businesses, or government entities—and can create significant challenges for buyers if they go unnoticed before the sale.
Before starting a lien search, it’s important to understand that multiple types of liens may be attached to a property. Most liens are part of public records, and a standard title search will reveal any publicly recorded liens that could complicate a sale. However, unrecorded liens, such as unpaid municipal debts, may not show up in a typical title search but can still transfer to the buyer if left unresolved. To uncover these, Fresno investment buyers should conduct a municipal lien search, which includes identifying unpaid local or federal tax debts that could otherwise go unnoticed.
When purchasing property, you also take on any existing debt tied to the property through liens, meaning the title may be considered clouded or unclear. A clear title is essential for completing a real estate transaction or securing a loan against the property. To resolve these title issues, legal actions such as filing a civil suit to quiet the title or utilizing quit-claim deeds are often necessary. These steps help remove clouds on the title, ensuring a clean transfer of ownership and allowing the sale or refinancing of the property to move forward smoothly.
Let’s explore how Fresno investment buyers can conduct a lien search effectively.
Municipal Liens
When conducting a lien search, Fresno investment buyers should begin by consulting the county property appraiser for property records. Additionally, it’s essential to investigate any prior property annexations from one municipality to another to ensure no liens existed before the change in jurisdiction. Researching the utility companies that service the property, such as water or sewer providers, is also critical. Moreover, you should check with local authorities that have the power to levy special assessments.
Once you’ve gathered the necessary resources, here are the key searches to complete:
- Property Taxes: Verify that all property taxes are paid and up to date.
- Special Assessments: Check for any assessments levied by local governments for improvements, such as roads or sewers.
- Tangible Personal Property Taxes: Ensure there are no outstanding taxes on personal property associated with the real estate.
- Utility Lien: Investigate if there are unpaid utility bills that may result in liens.
- Code Violations: Check for unresolved code violations that could result in fines or legal issues.
- Permit History: Review the property’s permit history to ensure all work is properly permitted and completed.
- Online Lien Search: Conduct an online lien search through available databases to uncover any additional liens on the property.
Investment buyers can conveniently access property records online to conduct a lien search for Fresno properties through the county clerk, recorder, or assessor’s office websites. By using the property address or the owner’s name, you’ll have the necessary details to complete your search. These online portals are typically user-friendly and provide a reliable way to access lien data. For additional guidance, consider calling the county assessor’s office before beginning your search to understand their process for identifying liens on properties in Fresno. This step can ensure you’re conducting a thorough and accurate search.
In-Person Lien Search
If you prefer to conduct an in-person lien search in Fresno, investment buyers can visit the assessor’s office to obtain the parcel number and tax information for the property. The staff at the office are typically familiar with the process and can assist you with any questions during your search. Afterward, a trip to the county clerk’s office will allow you to review the property’s ownership history, where you can check the chain of title to ensure there are no issues, such as a broken title chain, that could affect future transactions. Additionally, performing a public record search on each previous owner can help verify that all records are complete and names match, reducing the risk of complications during the title transfer process.
Third-Party Lien Search
There are several third-party businesses, both online and in Fresno, that offer title, property record, and lien search services specifically for Fresno investment buyers. While working with a professional title company or a title abstractor comes with a fee, the cost covers a comprehensive title report. This report includes detailed findings from the lien search, such as any potential clouds on the title, and helps protect you from unforeseen issues during the transaction. Using a professional service ensures a thorough examination and gives you peace of mind before moving forward with your investment.
Title Insurance
Title insurance acts as a safeguard in case a lien search misses any title defects or clouds. This insurance protects buyers from potential financial losses or legal costs related to undiscovered title issues, provided they are covered under the policy. Considering that these problems can sometimes amount to tens of thousands of dollars, lender’s title insurance—which is typically purchased by Fresno investment buyers—offers protection for the lender from financial loss. This policy ensures that both the lender and the buyer are shielded from unforeseen complications in the title that could affect the property transaction.
Let the experienced professionals at Matt Buys Houses simplify your process! Whether you’re navigating a lien search for an investment property in Fresno or looking for your next opportunity, Matt Buys Houses is here to help. We have a reliable inventory of Fresno investment properties and an in-house team ready to guide you every step of the way. Get started today by calling Matt Buys Houses at 559-978-2241 or sending us a message—our experts are standing by to assist you!