Property Liens
One thing that I always recommend to buyers when purchasing a property is pulling title on it before writing an offer. Numerous items may show up; restrictive covenants , encumbrances, and liens – lets take a brief look at a liens here.
A property lien is defined as a legal claim on a tract of real estate granting the holder a specified amount of money upon the sale of the property. Liens are often registered against a property acting as collateral for owed money.
There are many types of liens, the most common being mortgages. Other liens you may potentially come across: from the city (property taxes oweing), Canada Revenue Agency (personal taxes oweing), Condo corporation (condo fees), lenders of second mortgages, or construction/renovation liens.
Any lien other than a mortgage could raise some red flags as to the ability of the owner to sell the property. It is important to note the price you are purchasing the property vs. what is oweing against the property in order to avoid any headaches or delays down the road when transferring the property.
