There are three main types of defects that can appear on a title, and we’ll cover each of them today.
1. Building violations. If you live in a co-op, this applies to everyone living in the property. Building violations aren’t uncommon and, sometimes, aren’t very serious. It usually relates to an incomplete building permit or some feature of the building being out-of-code.
2. Liens. A lien is an unpaid sum of money owed by the homeowner. Properties can’t be sold until these fees are paid off. If it isn’t paid off, the lien is attached to the property, meaning the next owner would unknowingly become responsible. To avoid this, liens must be disclosed during escrow.
3. Judgments. If the property is subject to an ongoing lawsuit or has unpaid taxes still owed upon it, then it cannot be sold until these judgments are paid.
If you have any other questions or would like more information, feel free to give us a call or send us an email. I look forward to hearing from you soon.