What typically occurs when a title search reveals liens on a property?

When a title search reveals liens on a property, it indicates that there are financial claims against the property that need to be resolved before the transaction can move forward. Liens can vary in nature, including mechanics' liens, tax liens, or judgment liens, and they represent an obligation for the property owner to fulfill.

The correct course of action is for the seller to clear these liens before proceeding with the sale. This process is crucial because sellers have a legal obligation to ensure that the title is clear and marketable. A clear title means that there are no encumbrances that would negatively affect the buyer's rights to the property, ensuring that the buyer can take ownership without issues. Failing to resolve liens could lead to complications post-sale, so addressing them beforehand is essential.

In contrast, simply proceeding to closing without concern would not be prudent, as it would leave the buyer exposed to potential legal claims against the property. The property also does not become automatically unmarketable due to liens; rather, it remains marketable as long as the seller takes steps to resolve any existing liens. Additionally, liens typically do not increase a property’s selling price; they tend to have the opposite effect by deterring buyers who might be wary of assuming such liabilities.