Lien Disclosure

[cbradf]

In New York State, is a property owner (commercial) required to disclose to a prospective buyer any liens against the property?

[Shay-Pari'e]

[quote=cbradf;1685670]In New York State, is a property owner (commercial) required to disclose to a prospective buyer any liens against the property?

Of course you are. What do you want? Do you want to go into closing and then have them learn about it?

I would back out in a heart beat if I was the buyer.

[nextwife]

The title report will also show all liens of record, and the buyer's closing agent will require they be paid off at closing. The title insurance commitment is a sufficient form of disclosure. If, for some reason, it does not then show on the title report, seller has a duty to make sure his closing agent is paying it off

Actually, If the seller is paying off the lien at closing, it is irrelevant to the buyer and would not really need to be disclosed on the offer. I almost never see offers contain disclosures of matters paid out at closing that would not affect buyer. I've done many closings in which liens were paid at or before closing (if before, we simply bring a copy of the original lien release we rec'd and recorded) and not disclosed on offer. Tax liens, CS liens, mechanic liens, etc are often paid from proceeds.

[cbradf]

Thank you for the reply. Quick follow-up question: I have a "gentlemen bet" with my father (resides in New York City), who says a seller is "not required" to disclosure information such as a lien, as such information will be discovered when the buyer does a title search. I'm not an attorney, but that does not sound accurate. I have found all sorts of info about mandatory disclosure forms but none actually call for lien info. Even the title report, as you said, the info would be listed, is not something that the seller has to provide.

So, is there a required report or disclosure form that a seller has to provide that would include lien information? Thank you in advance.

~Carl

Originally Posted by nextwife

The title report will also show all liens of record, and the buyer's closing agent will require they be paid off at closing. The title insurance commitment is a sufficient form of disclosure. If, for some reason, it does not then show on the title report, seller has a duty to make sure his closing agent is paying it off

Actually, If the seller is paying off the lien at closing, it is irrelevant to the buyer and would not really need to be disclosed on the offer. I almost never see offers contain disclosures of matters paid out at closing that would not affect buyer. I've done many closings in which liens were paid at or before closing (if before, we simply bring a copy of the original lien release we rec'd and recorded) and not disclosed on offer. Tax liens, CS liens, mechanic liens, etc are often paid from proceeds.

[seniorjudge]

I have a "gentlemen bet" with my father (resides in New York City), who says a seller is "not required" to disclosure information such as a lien, as such information will be discovered when the buyer does a title search.


Ask pa if he is familiar with this word: fraud.

And then collect on your bet.