My experience is - only if they will assume title to the property as a result of the payout. Otherwise, they have no obligation in regards to any incumberances that might exist.Teetorbilt said:A guy in a condo stiffs you to the tune of 8K. He owns the condo but leases the grounds. You put a lien on the condo. The condo is condemned due to storm damage and the guy is going to collect ins. for his loss.
Will the ins. company do a title search prior to disbursing the funds to the deadbeat?
I would take the time to confirm that the lien is still in place and remind the condo owner of same.Teetorbilt said:It has been 3 yrs. and you have recovered from the loss, should you just walk
This scenario demonstrates Mike's point about the importance of being familiar with the statutes for perfecting a lien (sorry, different thread). For example, in my state if the value of the improvement or repair performed ($8,000) is less than 15% of the value of the structure (the condo) then the lien can not be perfected. If I had filed the lien and the condo was worth more than $53,333 then I'd be SOL when I tried to collect.