In cases like this where there's so much confusion as to whether or not something constitutes a valid lien, I simply follow this rule: "When in doubt, show it on the report."  That way, if the item were ever to become an issue, I know I've done my job.

That leaves it to the underwriter decide whether a potential title issue needs to be cleared or shown as an exception.  That's why they get the big bucks.

It'd be nice to have a definitive answer on this one, though.  Where's F. Lee Ahern when you need him?

Regards,
Scott Perry