If you are planning to buy a home or condo in Florida, we highly recommend that you employ the services of a company that specializes in lien searches. Liens that go undiscovered before signing the contract can cause a disastrous spike in your new property’s cost.
You may be surprised, but in the case of condos, an HOA could even foreclose on your newly purchased property for such a seemingly minor lien as $1000.
Luckily, at Florida Lien Search, we know the ins and outs of lien searches for both homes and condos. Keep reading for recent real-life examples of how lien searches have or could have prevented home buyers in Florida from nasty surprises after foreclosures.
A Narrow Escape from a Costly Mistake
Recently, on March 15th, 2024, a homebuyer in Tampa discovered that on top of the $500,000 they paid for their new home, they owed $90,000 to a contractor, Todd Britton-Harr.
Britton-Harr filed a lien because the property’s developer, M.A.X Investment Properties, stopped paying him. While it’s not clear whether the homeowner knew about the lien, the story underscores the importance of lien searches during property acquisitions.
An unfortunate event for one homeowner turned out to be a bit of luck for another homeowner-to-be. As it turns out, Britton-Harr filed a lien on another property that went under contract with a buyer for $950,000. Now that the story is in the news, the homeowner might be able to avoid making a costly mistake.
A Heart-Breaking Story of Undiscovered Liens in Port St. Lucie
Another story of undiscovered liens does not have a silver lining, and as such, it further highlights the importance of lien searches in Florida.
In 2023, a builder, Port St. Lucie Properties, failed to pay its contractors, which led to a record of 3.79 million dollars in liens. Some of the homebuyers had to pay thousands of dollars to avoid foreclosure.
One of the homebuyers, Alvarado, ended up with an empty lot. On top of that, he had to pay a $19,000 lien on his property that the landscaper filed.
What Are the Reasons for Liens Going Unnoticed?
With a surge of post-Covid activity, developers, builders, and real estate agents are in a rush to keep up with homebuyers. Lots of properties are constructed in Florida, so developers could run out of funds due to poor financial management. Additionally, no one is immune from fraudulent activities.
In light of the above stories, you must take the reins of the acquisition process. You should keep in mind that the listing agents may be in a rush to foreclose on properties, failing to help ensure due diligence throughout the process.
At Florida Lien Search, we are dedicated to making sure that your journey to a new home or condo in Florida is stress-free and successful. Contact us today to avoid any unpleasant surprises after foreclosure.