[zmacllc]

I had a written contract to purchase a commercial building in Philadelphia, PA with an owner who swore that the title clean. Of course I used an attorney to do a title search but this was after the agreement was in place. Three days before closing it came back showing there were 14 liens on the property! Some were state and some were private liens. Had I known this before going into the agreement I would have delayed the process. But I wasn't sure if I could do a title search on someone else's commercial building before having a written contract. Of course the contract was voided after I learned about the liens and I didn't purchase the building.

Is it legal (in any state) for a private person (as in not using an attorney) to do a title search on a commercial property BEFORE any sales agreement is made? If so, how?

[ScottGem]

I don't think it is illegal since it is a matter of public record. However, why would you spend the money unless you had a firm commitment to purchase.

But two points to make. First, your contract should have stated that it was contingent on the owner being able to provide clear title. If there was such a clause, then there would be no issue in waiting until after the contract was signed to do a title search. Second, a lien is not necessarily a problem in purchasing a property. As long as there would have been sufficient profit in the sale to pay off all the liens at the closing. What happens at the closing is buyer makes out checks to all the lienholders from the amount being paid for the property. Whatever balance is left is then given to the seller.

So lets say, you paid $1million for the property and there were liens totalling $750,000. So you make out checks for the $750,000 to the various lien holders and a $250,000 check to the seller. Then you get clear title.