Property taxes and mortgage loans are the kinds of encumbrances that most people associate with real property but there are other, personal, obligations which can affect the rights of an owner (or potential owner) to manage his property. An unpaid personal debt or judgment can be secure a lien position against real property by various legal remedies, and some obligations automatically assume a position, or ‘attach’ to a property, at the moment it is acquired by the debtor. It is for this reason that a Statement of Information is required of all parties as a condition of purchasing title insurance. The title company compares the personal information furnished by the principals with matters of public record to ensure that no unintended obligations will encumber the property at the time the escrow closes.
