Wiki defines a lien as a right to keep possession of property belonging to another person until a debt owned by that person is discharged. Along the same lines, a property lien is a notice attached to a property, and normally made part of the public record, indicating that a creditor claims you owe it some money. Potential buyers of said property will learn about the lien through a normal title search; however, unrecorded liens can negatively affect a buyer, and here’s how.

Many title companies are not conducting unrecorded lien searches on properties prior to closing. Unrecorded liens can consist of, but are not necessarily limited to, water and sewer service charge liens. If not disclosed to buyers, can add up to hundreds or even thousands of dollars in debt.

Pursuant to Florida Statute 159.17, such service charge liens are considered prior to all other liens on such lands or premises except the lien of state, county, and municipal taxes and shall be on parity with the lien of such state, county and municipal taxes. Therefore, you may be responsible for paying such liens upon ownership or upon requesting water and/or sewer service to your property.

You May Not Be Protected by Title Insurance

Unless your policy otherwise states, both the standard owner’s policy and the standard lender’s policy are based on an examination of only the public records of the recording district in which the land is located. These policies do not insure against liens not recorded in the public records such as unrecorded easements, liens or money obligations, unrecorded utility rights of way, public or private roads, community driveways and other types of encumbrances, or against the rights or claims of persons in possession of the property which are not shown by the public records.

Upon request, you may be able to purchase extended coverage with your title insurance, which may cover unrecorded liens; however, it is more prudent to uncover the unresolved liens and having them resolved before the property is owned by you. Doing so will save you hours of time researching, following up and resolving them after the fact.

Finding Unrecorded Liens

Using a reputable title company and a municipal lien search company, property buyers can discover any unrecorded municipal liens or debts on a property prior to closing.

About Florida Municipal Lien Search (FLMS)

Florida Municipal Lien Search, LLC is a privately owned and operated company providing title agents, attorneys, and realtors with unrecorded and municipal lien searches for all of the cities and counties in the State of Florida. Florida Municipal Lien Search conducts searches for municipal and county liens, unrecorded utility services, code enforcement violations, code enforcement liens, property taxes and special assessments. Founded on the principals of honesty and integrity, FMLS strives to make each and every client a long term, ongoing relationship. For more information, visit https://floridamunicipalliensearch.com or call 321-325-6255.