Liens and assessments must be recorded in the official public records in the county in which the property resides – in most cases. There are some liens which automatically attach to real property and do not need to be recorded and are often referred to as special assessments and Chapter 159 liens.

For these liens, a standard title insurance commitment will typically contain requirements and/or exceptions specifically dealing with assessments made in favor of the municipality, district or county for unpaid service charges. Some of the potential assessments, which could be in favor of the county, district or municipality, include:

Non-ad Valorem Assessments – In Florida, the real estate tax bill is a combined notice of ad valorem taxes and non-ad valorem assessments. Non-ad valorem assessments are not based on value, but a unit of measure determined by the levying authority. Assessment periods vary and may not be based on the calendar year.

Examples of non-ad valorem assessments are storm water, fire and rescue, gas, street lighting utility, and solid waste collections. Electrical service is usually provided by a private or public company, and is not a municipality or county-owned entity. Therefore, any outstanding electrical payments can be generally disregarded from the standpoint of the title insurance.

While the majority of these assessments would be recorded in public records and easily identified by the title examiner, it is the non-ad valorem and special assessments that may or may not be recorded that the title agent, attorneys and realtors need to be concerned about. Underwriters will usually require an independent lien search of the county, district and municipality to be performed before issuing title insurance. In Florida, a Florida lien search, Florida Statue 159 (F.S. Chapter 159), is typically required for the title agents to perform to remove exceptions when issuing title insurance policies to remove the special assessment requirement/exception.