In real estate, surprises are rarely good news. Buyers, lenders, and investors know that clear title is essential, but what about liabilities that don’t appear in the public land records? That’s where municipal lien searches come in. While a title search uncovers recorded liens, mortgages, easements, and ownership history, a municipal lien search digs into unrecorded obligations like unpaid utility bills, open permits, or code enforcement violations.
Think of it this way:
Both are crucial for reducing risk—and together, they create the strongest safety net for property buyers.
A title search is the cornerstone of every real estate transaction. Typically conducted by a title insurance company or an independent title abstractor, it involves combing through public land records to verify:
The end product is usually a title report or commitment, which a title insurer uses to issue a policy. This policy protects the buyer and lender against future claims tied to recorded issues.
However, here’s the catch: title searches rely on recorded documents. If a municipality hasn’t recorded a utility lien or open code violation, it won’t appear in the title report—even though it can still follow the property.
A municipal lien search expands the scope. Instead of just reviewing public land records, it requires outreach to city and county departments, including:
These issues don’t typically appear in the county recorder’s index, yet they attach to the property. When ownership changes, the buyer inherits the debt or obligation.
For example:
Some buyers assume a title search is enough. Others think a municipal lien search is only necessary for distressed properties. In reality, skipping either search creates gaps that can cost thousands later.
Here’s why both matter:
Beyond liens and title, another layer of due diligence comes from the ALTA/NSPS Land Title Survey. Many commercial transactions require one, and it complements both title and municipal lien searches.
The American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS) publish the 2016 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys, which set nationwide survey standards.
When paired with a title search and municipal lien search, an ALTA/NSPS survey provides a three-dimensional view of the property:
When lenders or investors require a commercial real estate transaction, they don’t just ask for any survey—they demand one that follows ALTA NSPS standards. These standards, created by the American Land Title Association and the National Society of Professional Surveyors, ensure consistency across the nation.
A survey conducted under ALTA land survey standards provides much more detail than a standard boundary survey. It incorporates ALTA survey requirements, optional items, and a format that title insurers rely on when issuing coverage.
The ALTA Table A is a list of optional items that a client may request in addition to the minimum ALTA survey standards. These ALTA Table A items allow customization depending on the transaction. For example, a developer may want parking space counts, while a lender may need flood zone classifications.
Here’s a breakdown:
| Keyword | Explanation |
|---|---|
| ALTA NSPS standards | Minimum nationwide guidelines adopted in 2016 for land title surveys. |
| ALTA land survey standards | A detailed survey framework that ensures consistency for lenders and insurers. |
| ALTA survey requirements | The minimum elements (boundaries, easements, improvements) required in every ALTA/NSPS survey. |
| ALTA survey standards | Another term for the same minimum detail requirements that surveyors must follow. |
| ALTA Table A | A menu of optional items that can be added to a survey for extra detail. |
| Table A ALTA survey | A survey that includes selected optional items from Table A. |
| ALTA Table A items | Specific extras such as topographic information, flood zone location, or utility markings. |
By weaving in these ALTA/NSPS survey terms, you not only improve clarity for buyers, lenders, and surveyors, but also capture critical SEO visibility for professionals searching these exact keywords.
Title insurers protect against recorded risks, but they typically exclude unrecorded obligations. That’s why many insurers and lenders now require municipal lien searches as part of closing. Some even integrate them into closing packages, ensuring no hidden liabilities slip through.
Relying on one search alone is like locking only the front door while leaving the back door wide open. A title search protects against recorded claims, while a municipal lien search protects against unrecorded municipal obligations. Add in an ALTA/NSPS survey, and you’ve got the full picture of a property’s legal, financial, and physical condition.
For lenders, buyers, and investors, the small upfront cost of ordering both searches (and a survey when required) is minimal compared to the potential six-figure liabilities they prevent.