What is the purpose of a lien search?

The purpose of a lien search is to identify any existing liens against the property. Liens are legal claims that creditors have against a property to secure the payment of a debt or obligation. By conducting a lien search, a title insurance producer can ensure that any outstanding debts associated with the property are uncovered before the transfer of ownership occurs. This is essential for prospective buyers, as existing liens can affect the sale and the buyer's title to the property. If an existing lien is not identified and resolved prior to closing, the buyer may face financial liabilities related to that lien after acquiring the property. Thus, a lien search is a crucial step in the due diligence process to protect the interests of both buyers and lenders involved in the transaction.