What is it?
During the transaction, the title company will run a title report. This report searches all public records for any issues, sometimes called “Clouds,” on the record. There are some very common records, such as CC&Rs, utility easements, or mineral rights. Buyers and sellers have the opportunity to review these reports, and be able to request changes (depending on the contingencies included in the offer). It’s important to note that items on a title report can almost never be removed, so if there is something objectionable the resolution typically involves not moving forward with the purchase.
What About Liens?
It is normal to have liens on a title report, as most owners have a mortgage at a minimum. By Washington law, all liens must be removed from title prior to selling a home, so these will be arranged to be paid and removed by escrow at closing. If a lien can’t be removed for any reason, the sale cannot be completed.