Question:
A Buyer is offering on a property being sold by the estate of the deceased owner. Nothing is known about the property including whether or not the furnace, a/c or HWT are rented or owned. The property has been vacant for over a year. If any of these items are rented and the monthly rental fees have not been paid, I would assume there would be a lien on the property. If the Buyer’s lawyer discovers a lien, how does that get resolved? By the Estate’s proceeds of the sale?
Answer:
You can generally tell if things are rented because they will have a company sticker on them. Check things and if there is a sticker, call the number to see if there is an account or perhaps if it was bought out at some point.
Try to see if there is one by pulling registration. Put all of those items under what is owned and not rental items, then estate will have to pay them all out on closing and it isn’t the Buyer’s problem.
if any liens are registered against the property it will show up on the title search. The Buyer’s lawyer will then requisition those items be removed from title before closing (or accept Seller’s lawyer’s undertaking to pay from sale proceeds and remove post-closing).
When selling, since a lien could show up at anytime before closing add a clause to the effect that the Buyer will accept the Seller’s solicitor’s undertaking to register a discharge. This way, it can be paid out of the closing funds. This is very helpful if the Estate does not have the necessary funds ahead of time.
Brian Madigan LL.B., Broker