Legal Question in Real Estate Law in California

I am purchasing a home where the seller's were not aware of an IRS and State tax lein from the PREVIOUS SELLER. What can be done so I don't have to pay the liens as the new buyer?

Thanks for your help!


Asked on 8/14/12, 11:21 am

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Talk to the legal staff at the escrow company handling the closing. You should receive title free and clear of prior liens, and the liens should be paid from the proceeds of sale before any $ goes to the seller. I assume your purchase agreement doesn't include any language saying that you agree to take the property subject to these pre-existing liens.and that you have bargained for a grant deed, not a quitclaim.

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Answered on 8/14/12, 11:50 am
Anthony Roach Law Office of Anthony A. Roach

I agree with Mr. Whipple. If you are using escrow, and have contracted to purchase title free of any liens and encumbrances, then your title insurer and escrow is not going to let you take title without those being paid off. That usually comes out of what you have paid the property, so the seller gets less money.

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Answered on 8/14/12, 12:13 pm

Unless the previous seller and the person selling to you did this transaction without a professional escrow and title insurance, your situation seems very strange. If the liens attached before the sale, the sale should not have closed without the liens being paid back then. If they attached after the sale, then they should not be valid. In either case, your seller should be talking to his title company from when he bought the property about why those liens are still there, and you have the right to require that they be cleared before or at close of escrow.

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Answered on 8/14/12, 2:11 pm


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