Buyer's guides / Title and permits
Liens, judgments and open permits: what can follow a house to its new owner
When you buy a home, some of the seller's problems stay with the seller and some stay with the house. Knowing which is which, and finding them early, can save you thousands of dollars and a delayed closing.
Recorded against the property
These show up in the county clerk's official records and attach to the property itself:
- Mortgages. Normally paid off from the sale proceeds at closing. Watch for a second mortgage or a home equity line the seller forgot about.
- Construction liens. A contractor, subcontractor or supplier who wasn't paid for work on the house can record a lien. Look for a recent notice of commencement too: it means work was started and liens may still be coming.
- HOA and condo association liens. Unpaid assessments can become a lien. Ask for an estoppel certificate, which states what's owed through closing.
- Lis pendens. A notice that a lawsuit involving the property is pending, such as a foreclosure or a dispute over ownership. Treat it as a stop sign until a lawyer has looked.
Recorded against the owner
Judgments are recorded against a person, and in Florida a recorded judgment can become a lien on property that person owns in that county. Homesteads have strong protection from most creditors, but investment property, second homes and properties owned by companies may not. A title company searches the owner's name for judgments, which is one reason the exact spelling of every owner's name matters.
Not always in the clerk's records
Some of the most expensive surprises live in city and county databases rather than in official records:
- Code enforcement fines and liens for violations such as unpermitted work or an overgrown yard. Fines can accrue daily.
- Utility and special-assessment liens for water, sewer, solid waste or street improvements.
- Open and expired permits. A permit that was issued but never closed with a final inspection.
This is why many buyers order a municipal lien search alongside the title search. Ask your title company whether one is included.
Why open permits matter
An open permit means the building department never confirmed the work met code. After closing, closing it out can fall to you, and that may mean finding the original contractor, paying for new inspections, or opening a wall. Unpermitted or open work can also affect insurance, especially for roofs.
What to do:
- Ask the seller for a list of work done and the permits for it.
- Search the building department's permit records by address yourself. Some portals show status, inspection results and expiry dates.
- If you find an open or expired permit, ask the seller to close it before closing, or negotiate a credit or escrow.
- Compare what you see in the house with what's permitted: a new roof, windows, an enclosed porch or a converted garage with no permit is a question for your inspector.
Tax certificates and delinquent taxes
Unpaid property taxes don't disappear with a sale. In Florida, the tax collector sells tax certificates on delinquent taxes, and they're normally paid off at closing. Check the tax collector's site for the current year and any past-due years.
This article is general information, not legal advice. A title company or Florida real estate attorney can tell you how a specific lien or judgment affects your purchase.