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Why does the title company looks for judgments against the buyer?
Wiki User
∙ 14y ago
A judgment lien that is recorded becomes an encumbrance on the real estate. It means someone else has a security interest in the property until the lien is paid off. Once a lien is recorded it constitutes a cloud on the title. Title insurance companies want to know exactly what they are insuring so they want the title examined to disclose any other entites that may have any interest in the property.
Wiki User
∙ 14y ago
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