Gardena, CA asked in Foreclosure, Real Estate Law and Tax Law for California

Q: I am looking to buy Property through Tax Auction in California. I have the following legal questions regarding it

1) If I buy a property which is in Tax Deed, and I become the Owner. What happens if they have leased the property to someone for many years? And that lease is not recorded in the County Office officially. Is that still valid and I have to respect that as new Owner?

2) If the same is true for Tenant agreements by old owner for many years?

3) What happens when there is a IRS Lien? Should I pay it after I buy the Property?

4) What happens when there is some Levy on the property how Can I get it off the property?

1 Lawyer Answer
James L. Arrasmith
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  • Sacramento, CA
  • Licensed in California

A: If you purchase a property through a tax auction and become the owner, any existing lease agreements that were not recorded in the county office may still be valid. You will need to review the terms of the lease agreement and determine whether the tenants have a legal right to continue living on the property.

Similarly, if the previous owner had tenant agreements that were not recorded, those agreements may still be valid. As the new owner, you would need to review the terms of those agreements and determine your legal obligations to the tenants.

If there is an IRS lien on the property, you will generally be responsible for paying it after you purchase the property. You may want to consider obtaining a title search before purchasing the property to identify any outstanding liens or encumbrances.

If there is a levy on the property, you will need to work with the agency that issued the levy to resolve the matter. This may involve paying the debt or negotiating a payment plan. Once the levy has been satisfied, you can take steps to have it removed from the property, such as filing a satisfaction of judgment with the court.

It's important to note that purchasing a property through a tax auction can be a complex process, and there may be legal and financial risks involved. It's recommended that you consult with an experienced real estate attorney who can advise you on the specific details of your situation and help you navigate the process of purchasing a property through a tax auction.

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