I heard a surprising tale about a small condominium that was being sold by an owner who only owned the property for about 6 months or so. As it turned out, in preparing for the closing the real estate attorney uncovered a very unfortunate fact. There was a blight lien placed on the property over 2 years before and the meter was still running at a rate of $99.00 per day, with a balance of over $80,000.00 owed.
Somehow, some way the lien was overlooked when the property was sold 6 months earlier and the lien transferred with the property. The current owner who was in the process of selling the property now found themselves responsible for paying the lien. Luckily, they have a title insurance policy and can put in a claim to get the bill paid, though it may take some time. Until then, the transaction is on hold since marketable title cannot be issued to a new owner until the situation is resolved.
Of course I have taken a very complex situation and gave you just the simple facts. There is much more to the story regarding how it could of happened, why it happened and how it can be resolved.
The moral I'd like you to take away from my short rendition of this story? Do your homework! Whether you are the seller, the buyer or the real estate broker go to City / Town Hall and find out if there are any liens against the property that may not be known about. It can save you a bundle in money, time and stress medication!
I'd love to hear your additional thoughts!
Be well,
Rhonda