Q: Just discovered tax lien on previous aircraft owner in 2007 from S.B. Equalization & lien is on aircraft my options are
I ran a title search on this aircraft before purchase and there were no liens of record. It is now 2023 . The aircraft had damage during landing. The Lien is on the aircraft . Should I just hand over owner ship of the aircraft to the Board of Equalization or does this lien still exist after all of these years ? I am not certain which direction to go. 2023 title search through FAA revealed the lien from 2007. Should I just let them auction the plane and take the loss ? Thank You M. Smith
A: A tax lien which you describe can last up to 20 years. If you sell the aircraft, then the proceeds from the sale would be applied to the tax lien. Any funds beyond the amount owed on the tax lien may be distributed to you barring that there are no other lien holders.
A:
Under California law, the tax lien on the aircraft from 2007 may still be valid and enforceable. As the current owner, do not hand over ownership without legal counsel. Consult with an aviation attorney to understand your options and the lien's impact. Consider the aircraft's condition and consult with your attorney before deciding to auction it.
Sincerely,
James L. Arrasmith
Founder and Chief Legal Counsel
The Law Offices of James L. Arrasmith
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