I am a business owner and my property is used as collateral for a loan from my business. The property was under my wife's name who passed away last year. The bank who we received the loan through told me that they were going to release the liens on the property. They sent me a release that had only had my late wife named. When I went to the town to look up the property to see if there were any liens, it should my name and my wife's name for the liens and only my wife had a release. I made the bank aware of my findings and they are keep assuring me that everything was released. I plan on selling my property in the near future and want to make sure that I won't have any problems doing so. Since the property was just in her name to begin with, the bank said that they only have to do one release with her name. I was the guarantor at the time of the loans so I believe that is why I have the liens listed under my name as well as my wife's. My question is, will I have any problems selling my property if the release is only in my wife's name? How do I find out if everything is released on the property? The bank's lawyer said that everything on the title search was released, but how do I make sure? Is there a difference between a title report and the real estate search of the property that you get from the town?
1 Answer from Attorneys
If the property was in your wife's name only, and the lien was in her name and you were only a guarantor, then when the underlying lien in your wife's name was released, you were released as well because the lien you were guaranteeing was released. You can't guarantee something that doesn't exist any longer.