What are "silent liens"?

Silent liens refer to those encumbrances on a property that are not visibly recorded in the public records but still might have a significant impact on the title. These typically include claims or legal interests in a property that have not been formally recorded or made known to the public.

For instance, if a contractor or service provider has not filed a lien but has a right to one based on work completed, this could create a silent lien. Even though it may not show up in title searches or public records, it can still affect ownership rights and the ability to transfer the property.

This characteristic of silent liens makes them particularly concerning for potential buyers and title agents, as undisclosed liens can lead to disputes and financial liabilities. Thus, understanding the implications of silent liens is crucial for proper title examination and ensuring clear ownership.