Once paid, the creditor is legally required to file a release in the same public records office where the lien was originally recorded.
Alex was ready to sell his starter home. He found a buyer, agreed on a price, and was weeks away from closing when his real estate agent called with bad news. A title search had uncovered a "cloud" on the title: an active mechanic’s lien . Once paid, the creditor is legally required to
The most common type; the bank holds a claim on your home until the loan is paid off. A title search had uncovered a "cloud" on
Professionals like those at First American or Fidelity National Title can conduct a comprehensive search for a fee (usually $75–$200). Alex soon realized the power of a lien
Alex soon realized the power of a lien. Because it was a public record attached to his property, he could not provide a "clean title" to his buyer. No bank would approve the buyer’s mortgage while the lien existed, effectively freezing the sale. The Resolution To save the sale, Alex had a few options:
Alex was confused. He had paid for a kitchen remodel three years ago and had the receipts to prove it. However, while Alex paid the general contractor in full, that contractor never paid the cabinet supplier . Under , the unpaid supplier had the right to file a claim against Alex's property to ensure they got paid—even though Alex had already paid the contractor.