This month’s tip comes from Stephanie McCleery, Escrow Officer in our Amberglen branch in Hillsboro.
What are red flags on title? When the title report is published it provides a story of the property. The title report determines if there are any rights or claims that may have an impact upon the title such as taxes, unsatisfied mortgage, judgments tax liens against the current or past owners. The matters can either be accepted, resolved, or extinguished through the transaction. Some of these red flags can cause delays if not addressed early in the transaction. There are ways to prevent delays from happening; providing contact information for all parties so escrow can get the necessary information to clear the red flags. Here are a few of the most common red flags:
- State Warrants
- Federal /state tax liens
- Mechanics’ liens
- Seller not vested in title
- Probate
- Judgments against buyer and seller
- Child support/spousal support
- Pending lawsuits
- Paid in full, unreleased loans
- Foreclosure
When these red flags appear on title the escrow officer will need to contact the party the lien/judgment is against. Ways to clear these liens/judgments vary. The more information provided to the escrow officer, the more efficient the process will be to clear the red flags.
When in doubt call your escrow officer ahead of a listing and ask the questions; we can always start clearing known red flags ahead of time, so you and your clients are ready to move forward smoothly.
