No Real Estate Closing Surprise Is Still The Best Surprise."

     One problem that sometimes occurs immediately before a real estate closing is the "surprise" lien against the seller's property.  As a thirty year veteran of the real estate industry, I have had  a few experiences with this.

     My favorite example is this.  I once sold a house for $100,000.  The seller said he only had a $20,000 first mortgage.  After commissions and closing costs and his $20,000 mortgage, he was expecting to leave the closing table with about $72,000 in his pocket.  When the title company ran the title search, there was a lien for $3200 against his house because the seller had been sued a few years ago when he wrecked his car with no insurance.  The plaintiff had a judgement lien and interest to be paid off.  This closing was set to close on December 18th.  When I called the lienholder to inform him that we would be paying him off on December 18th, he said, "Well Merry Christmas to me" .

     Sometimes when the dollar amount is larger, this is a lot more of an aggravation.  I call these "surprise" liens.  They are usually not a surprise to the seller.  The seller is just surprised that the liens were discovered by the title insurance searchers. Mr. Seller is expecting to leave the closing table with a check for $100,000.  When the title searchers is done, a $40,000 lien is found and the seller is mad.  The seller often claims that he did not know about the lien.  He forgot about losing that lawsuit last year.  His $100,000 check just turned into a $60,000 check.  The only person Mr. Seller can be mad at is himself.

     Liens last a long time.  Sometimes liens have expired or are invalid for some reason.  These problems are easier to diagnose and solve when it is not happening at the last minute.   Inform your Realtor if you think you might have a lien. The best surprise is still no surprise.

     Ron Climer is a real estate agent at Keller Williams Realty in Hendersonville, North Carolina.  If you have any property for sale in western North Carolina, call Ron at 828 755 6996

     www.lakeadgerforsale.com   www.ronclimer.com