Buying property with a lien on it?

[WYRD]

In California when you purchase property and there is a abatement lien on it from the county, does that get paid off by the seller in the close of the contract?

 

[Good Stuff]

In California when you purchase property and there is an abatement lien on it from the county, does that get paid off by the seller in the close of the contract?

Should be as long as you negotiate that to be paid. If you are using a title company they should be requiring some sort of cure for the lien prior to closing the transaction. Most government liens are not allowed to stay on the property through a transfer and must be paid. I typically see sellers taking care of these but if there aren’t enough proceeds to cover all the debts (short-sale or distressed purchase for a flip) sometimes a buyer has to provide the additional funds to cover it.

 

[WYRD]

Should be as long as you negotiate that to be paid. If you are using a title company they should be requiring some sort of cure for the lien prior to closing the transaction. Most government liens are not allowed to stay on the property through a transfer and must be paid. I typically see sellers taking care of these but if there aren’t enough proceeds to cover all the debts (short-sale or distressed purchase for a flip) sometimes a buyer has to provide the additional funds to cover it.

Proceeds should not be an issue it's like 12 Grand to cover weed abatement over the last 15 years. I just wasn't sure if title/ escrow would require satisfaction of the liens prior to closing. Thank you for the information that was kind of what I was thinking.

 

[ChumpChange]

Yes. It will come from the proceeds of the sale.

 

[530RL]

Yes. It will come from the proceeds of the sale.

Unless it is an exception on schedule B.

 

[ChumpChange]

Unless it is an exception on schedule B.

Must have a friend who is a title officer then.

I’ll clarify that my answer comes from the direction of a bank that will be needing a perfected first trust deed on the property. Many things can happen, including exceptions, if there won’t be institutions needing lien priority.

 

[530RL]

Must have a friend who is a title officer then.

I’ll clarify that my answer comes from the direction of a bank that will be needing a perfected first trust deed on the property. Many things can happen, including exceptions, if there won’t be institutions needing lien priority.

The point which I am sure you get is that the requirement section of the prelim will state what is required to be satisfied in order to close and the exception section will state which liens remain.

The technical answer to the OP is……..read the prelim and it will in simple terms state if that lien must be paid as a requirement or if it will remain as an exception. Or post a copy of it and dozens of us will read and comment on it.

 

[rivermobster]

The point which I am sure you get is that the requirement section of the prelim will state what is required to be satisfied in order to close and the exception section will state which liens remain.

The technical answer to the OP is……..read the prelim and it will in simple terms state if that lien must be paid as a requirement or if it will remain as an exception. Or post a copy of it and dozens of us will read and comment on it.

With dozens of different answers!

 

[Mandelon]

I would be surprised if you can get a new first or even title insurance with an outstanding lien on it. I'm sure there are ways to do it, but typically that lien will be paid.