If you’re in the market for residential or commercial property, you’ll likely connect with a professional who will perform a title search on the property. A title search reviews a number of documents to learn more about the property and whether or not the title is free from issues that could complicate a clean sale. One of the first things any good title researcher will do is look for the presence of a lien on a property.
Liens are legal claims against an individual or a property to secure a debt that is owed. Debts associated with a residential property can vary greatly from the debts you may incur with commercial property, so you’ll want to connect with someone who specializes in the type of search you need. At Commercial Partners, we understand the unique type of liens that may be associated with a commercial property, and we’ll leave no stone unturned to ensure you don’t inherit someone else’s debt once you purchase a property. In today’s blog, we explain how lien searches differentiate between residential and commercial properties.
Residential Vs. Commercial Lien Searches
In most instances, a lien search on a residential property will be much simpler than on a commercial property. That’s because there are fewer ways to go into debt with a residential home than with a business property, but also because it’s usually simpler for an entity to rectify an outstanding debt with a home owner. Debt collectors know where the homeowner lives, but it can be harder to track down a commercial property owner, and that can make it more challenging to settle a debt, even if the commercial property owner wants to settle the outstanding matter.
For residential lien searches, the focus will typically be on:
Commercial lien searches are more involved because a business has greater potential to go into debt. Some commercial lien searches that will be conducted prior to closing on a commercial property include:
Moreover, because commercial property may be held in a different manner than a residential property, it can be harder to piece together who is responsible for the debt. If the property is jointly held, is going through probate or is part of a trust or LLC, it can complicate settling these debts. We’ll make sure that all potential liens are uncovered and that you never have to be worried about being on the hook for someone else’s debt.
If you want to learn more about lien searches, let the team at Commercial Partners be your guide. We can ensure any prospective property is thoroughly vetted before you commit your hard earned money to a deal. For more information, or for help with a different aspect of commercial real estate, connect with our team today by calling (612) 337-2470.