In selling or buying real estate, there are certain basic terms of which an individual needs to become aware. Among them is a warranty deed with vendor’s lien. It combines several different principles found within real estate law. These include the terms warranty deed and vendor’s lien.
What is a Warranty Deed?
A warranty deed refers to a series of clauses or terms found within a deed drawn up for a piece of property or real estate. These clauses form a covenant (agreement) that stays with the title-holder of real property or real estate. It is a guarantee the property is free and clear in title.
What is a Lien? A Vendor’s Lien?
A lien is an attachment or encumbrance. It is used in real estate but is not exclusively so. It means someone has the right to hold the property of someone else as security for an unpaid debt. Types of liens include mechanics lien and vendor’s lien.
A vendor is a seller. In the case of property, the individual who sells the property to a buyer is a vendor.
Warranty Deed With Vendor’s Lien Defined
A warranty deed with a vendor’s lien combines the various terms into a specific meaning and application. The term as applied in real estate refers to a specific form of real estate transaction that attaches a lien. It is common in Texas. In particular it is a form of security for the vendor.
Why A Vendor’s Lien?
There are different types of legal means an individual may employ when selling his or her property. A lien is a form of security the seller or vendor will receive his or her money. A common lien in real estate transactions is called the Deed of Trust Lien. It is not the only form of lien in real estate deals.
Although not common in real estate, the vendor’s lien is a type of assurance. It does have a specific application that makes it useful for the seller of a piece of property. It provides the seller with the right to reclaim his or her property under the right circumstances. This means, particularly in Texas, the buyer can take back or reclaim his or her property if the buyer falls behind or does not make his or her payments.
Involving a Lawyer
A purchaser should hire a lawyer to ensure there are no types of liens on the property before purchase. A Vendor may wish to use a lawyer to guarantee he or she is protected in case the purchaser fails to pay.