When a property is getting ready to go on the market. The listing agent will pull a preliminary title report with his or hers preferred escrow company. Once the prelim has been received, the title company and realtor can see any liens and judgments that is attached to the property. When the home is sold ,the buyers lender and escrow company must provide free and clear title to the new homeowner. The buyer will not be able to obtain financing for the property if there is a cloud on the title.
Here are the most common liens or judgments that can cloud title:
- Property tax liens
When a home owner fails to pay their property taxes this lien will become in first position over the mortgage lien.
- Federal and State taxes liens