**EDIT**
I've tracked town answers to a lot of my questions, and I've inserted them into my original post (below) in RED :)
So as you may have seen in the new members/introductions forum, I'm very green and have a lot to learn. As a result I've got a million questions and will probably post them in this thread... Perhaps in the future it will become a go-to source of information for new members.
For the time being, I've got a question about liens.
I've done some research and as I understand it, a lien is basically a "claim" on the value of an object. The circumstances I'm questioning are property, of course, so banks and other lenders claiming monetary values against the houses/properties for whatever value they're owed.
My questions are this:
- I understand that a title search is the way to check for liens against a property (correct?) in addition to other information. My questions relating to this are: Can this be done with only the address and related info, or do you need the "technical" information? (i.e. lot number, PIN number, and all that other gibberish) Just as well, can it be done with only the technical info and not the postal/street address?
A Title search can be done with the technical information, OR the street address. Catch is, you may have to do (pay) for other searches to get the rest of the information to then conduct the title search.
- Is it possible that a lien wouldn't show up on a title search, or be added between the search and the final sale process? If so, is there any insurance against this? Should you just wait as long as possible to check for liens? Should you check them again the day of or day before buying/bidding?
Yes, it is possible for a lien to be added any time before the property has been transferred. It is advisable to wairt till the last day to conduct a title search, or better to conduct a title search and then a follow up search. It is also advisable to also conduct an execution search against the owner, as they may have liens against them.
- Are lawyers the only ones who can do title searches? Would city hall be able to give me (or anyone) lien information? Basically, is there any alternative (READ: CHEAPER) way of checking for liens? Assuming of course that you have the address or other necessary info.
Anyone can conduct a title search and/or an execution search. This is typically done through the local offices for the jurisdiction, but these days can be done online (for Ontario) through the "Teranet" public-private partnership.. Or something.
- Are the results of a title search usually in "layman's" English, or are they in technical/law terms?
Technical terms, unfortunately. Though if you get a lawyer to do the search they may translate it for you
- Would the results of a title search (or whatever the correct method is) show the current lien against a house? Or would it only show the initial value, and then the interest rate and other info needed to calculate what the current debt is?
Still not sure about this one.. I suspect it's initial value only.
-----
Will Add more Questions in this area soon :)
-----
I have a pretty good idea what the answer is to some of the above, but to save space and time I'll just ask them in the forms of questions, rather than "is it true/correct that .... under x circumstances, but y under other circumstances?" etc
Thanks a bunch!! ;D