Legal Question in Real Estate Law in California

Re: law - tax lien effecting title

A tax lien is a lien against all real property owned by the tax payor.

Re: law - tax lien effecting title

A tax lien is as good as a judgment. If the title company allowed sale of the property without collecting on the tax lien, they would be required to pay on the lien.

Re: law - tax lien effecting title

A tax lien, like other liens, does not change the identity of the record owner, if that's what you mean by "effect" title. Property subject to a lien does not change hands until the lien holder forecloses. However, property affected by a lien cannot be bought or sold as freely, because the lien reflects someone else's adverse claim for meney which can be enforced against the property and hence against the interest of subsequent owners.

Title companies merely point this out to would-be buyers when they prepare preliminary title reports.

There is no one particular statute that one can point to as covering the whole filed of liens, title insurance, foreclosures, etc. -- but generally tax liens arise almost automatically as a result of non-payment of property taxes. Other types of liens such as mechanics' liens and liens created by deeds of trust also do not require any judicial action.