You are browsing the archives of July 2009.

The primary instrument in all property transactions is the deed. Property deeds are recorded documents legally denoting the transfer of land from one party to another. The parties listed on a deed are either grantors (sellers) or grantees (purchasers).

Property records, one of the most commonly utilized public records, can be used to learn a wealth of information about a property and its owner. Over the following weeks, we will be posting a series of articles here describing how to conduct an analysis of the several principal types of property documents.

Last week we discussed several types of tax liens often filed against individuals and businesses. Another form of a lien commonly filed is the Mechanic’s Lien. A Mechanic’s Lien is not necessarily an adverse filing, but under certain circumstances can suggest that a property owner has refused to pay a contractor for services rendered.

Tax liens are a useful resource for conducting public records research on a potential business partner, company or a political figure. For the potential investor, a tax lien can serve as a warning sign of deeper underlying financial problems. Additionally, many forms of tax liens qualify as secured creditors in bankruptcy proceedings, meaning paying the lien will take precedence over an investor’s claim if the company were to seek Bankruptcy Court protection. For political figures, the existence of a tax lien can make them vulnerable to arguments that they are not meeting their civic obligations and are hurting the institutions funded by the unpaid taxes; such as schools, police or fire departments.