If someone has placed a mechanic’s lien on a home that I am trying to purchase, canI stillbuy it?

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If someone has placed a mechanic’s lien on a home that I am trying to purchase, canI stillbuy it?

I’m trying to purchase a house that I’m presently renting.

Asked on February 28, 2011 under Real Estate Law, Ohio

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The issue of purchasing a home with an existing lien is you don't have clear title.  Title is clouded by an existing lien, so if the person attempts to sell that home, the lien will most likely need to be paid off first before anything else can happen.  You should ensure you obtain a full title search and obtain title insurance during the sale process so that in case anything goes wrong, and the lien is not cleared, you might be able to protect whatever monies you fronted to purchase. Make sure your broker concentrates on ensuring the seller together with the lien holder get the matter cleared during or before the closing process.


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