Keller Williams Realty Atlanta – Peachtree Road
Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers
Real Estate Legal Tip
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Title Issues: Home Buyers and Sellers with Common Names
A typical title search covers three (3) major components:
1. Recorded deeds and mortgages in the chain of title for the specific property;
2. Property taxes for the specific property;
3. Recorded liens and personal judgments against the owners of the property.
The deed records and tax reports will clearly indicate whether they affect the subject property (or not) by including a legal description, a tax parcel number, or a street address.
Liens and judgments, however, are checked using an individual’s name. If an owner of real property loses a lawsuit, the winner of the lawsuit can file a “fifa”, which is a real estate lien, against all property owned by the loser of the lawsuit. Most of these lawsuits are based on unpaid debts, such as car loans and credit card bills. The “fifa” will show the names of the plaintiff and defendant, the case number of the lawsuit, and the date of the final judgment, and is collectible for a minimum of seven (7) years. This type of lien must be paid and/or cleared at a closing just like a mechanic’s or materialman’s lien.
These “personal” liens do not usually show a property address, and only the income tax liens (federal or state) show a social security number, so these issues require extra time and investigation to clear the title. If your sellers or buyers have a common name, they may be asked to provide their social security number to the closing attorney during the pre-closing process so that the attorney can confirm whether these liens belong to the buyer or seller, or just someone with a similar name.
Presented By:
Leigh Clack, Attorney Neel & Robinson Attorneys at Law, LLC
Leigh.clack@neelandrobinson.com 404-705-3690 fax 404-459-0704
5555 Glenridge Connector, Suite 400, Atlanta, GA 30342
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