Lien Records Search Key Terms

Understand the language of lien records searches

Investing in real estate requires a lien record search so you know exactly what you're getting into. Lien searches indicate if there is any outstanding debt against the property. Those liens must be paid off before the title can be cleared for outright purchase. Each state has laws governing liens, and you can conduct a search through the recording entity in the county in which the property is located. To help you fully understand the results of a lien records search, consider the following key terms.

 

Tax liens

When an individual defaults on his or her property taxes, a lien is imposed against that individual. The lien acts as a security interest over the property to secure payment for the debt owed.
Try: SaveWealth explains how real estate tax liens work.

First lien

If a lien is declared as a first lien, it is given priority over other liens taken against the property. Priority is determined by the order in which liens were recorded against the property.
Try: Check out additional information about first liens from CSI Mortgage.

Tax lien certificates

Another way of collecting on tax debt owed is for a tax collector to sell the tax to an investor. The investor is then issued a tax lien certificate, which entitles him or her to a stake in the property.
Try: Learn more about what it means to invest in tax certificates through the Tax Research Foundation.

Marketable title

The ultimate goal is to have a marketable title on a piece of property. A marketable title refers to a title that can be transferred to a new owner without claims to the property being made by a third party.
Try: LandAmerica offers a complete definition with examples of a marketable title.

Tax levy

A tax lien is commonly confused with a tax levy. A tax levy is an action by the IRS to take control of property in order to satisfy a tax debt. Property covered by a tax lien is usually protected from a tax levy.
Try: Roni Lynn Deutch explains the difference between a tax levy and a tax lien.

Property folio number

To perform a proper lien records search, you need a property folio number in addition to the address. The property folio number is the data providing the legal description of the property's individual tract of land.
Try: The Hillsborough County Board of County Commissioners provides more information about property addresses and property folio numbers.

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