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When buying real estate, it important to confirm the seller owns the property and to know what, if any, liens are attached to the real estate. This can be accomplished by conducting a title search.  Additionally, the buyer may wish to purchase title insurance which may protect the buyer from financial loss due to defects in a title to a property. In the case of a REC, the buyer needs to be aware of all seller liens, so that the buyer knows that if he/she satisfies all conditions of the REC, he/she will receive clear title to the property.  


The title company can also conduct a "buyers" search which will identify any liens the buyer may have outstanding. In the case of a REC, it is important for the seller to know what liens the buyer has outstanding, because those liens will attached to the buyer's equitable interest in the property once the buyer purchases the property through the REC.  In the event the seller has to “take back” the property due to buyer’s failure to perform on the REC, those liens, and any liens the buyer acquires during the term of the REC, may remain with the property, and cloud the seller's title to the property UNLESS the seller handles the default process appropriately.

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