A major portion of any purchase/sale process in Fort Lauderdale should be searching the current title and deed for liens. A lien entitles a third party to seize property if the payment of a debt does not occur. Oddly, the presence of a lien on property does not preclude its sale, but instead, the lien travels with the property.
Identifying the presence of these liens is essential for any party looking to buy or purchase real estate. A Fort Lauderdale real estate liens lawyer is prepared to perform this search and determine if a lien may be a barrier to an efficient sale. In addition, an experienced attorney can work to clear a lien or make this a condition of sale to help you sell or buy land.
What is a Lien on Real Estate?
A lien is a formal legal declaration that a party has the right to seize property in the event of non-payment of a debt. Not just any party can ask for a lien to go onto property, and they must obtain permission from the County Recorder of Deeds to place this restriction on land.
In most examples, the lien is contingent upon the recognition of an outstanding debt. As long as the debtor continues to pay their debt on time, the lien will remain but eventually dissolve as the debt closes out. However, even a single missed payment entitles the lienholder to seize the property through the creation of a levy. Regardless of the exact terms of a lien or why it came into being, a proper title search must take steps to identify these legal actions and let potential buyers reckon with the potential consequences of their buying of the land. A real estate lien attorney in Fort Lauderdale could help you better understand this concept.
Helping to Clear Liens Prior to the Purchase or Sale of Property
The presence of a lien on property does not mean that a sale is impossible. While potential buyers are right to experience hesitation on these issues, the fact is that a lien may disappear through actions that either a buyer or seller can take.
The most direct way to clear a lien on real estate is to pay off the debt at the core of the matter. A seller may agree to do this prior to the closing date, or a buyer may take on this responsibility in exchange for a lower sale price.
Other options explore ways to clear a lien through legal action. A Fort Lauderdale real estate attorney could work to determine if the lien holder followed the correct procedure when placing a lien on the asset. If not, they could ask a court to invalidate the lien. Another option is for the current property holder to file for bankruptcy. This can result in a court issuing an automatic stay on all liens and possibly a full discharge of the debt. Parties looking to sell real estate may want to consider this option before placing the land on the market.
Reach Out to a Fort Lauderdale Real Estate Liens Attorney Today
Learning that there is a lien on property that you are looking to buy or sell raises many important legal questions. For current property holders, it is usually best to find a way to remove this lien prior to placing land up for sale. Possible purchasers will want to be sure that the lien will discharge upon their purchase of the property. Obtaining legal help could help to address both these concerns.
If you have questions about a lien on real estate, contact a Fort Lauderdale real estate liens lawyer now. They can work to evaluate the current status of the lien and determine if the holder followed correct procedures. If so, they can work to negotiate a possible release or include payment of a debt as a part of a purchase/sale agreement. Contact us now to schedule an appointment.