Legal Question in Real Estate Law in California
Lien on property owned by 3 parties
My mother and her 2 brothers inherited their parents home. My uncles have been living in the home. My mother has learned that there is a lien by the IRS on one brothers portion of the home for back taxes owed. Can debt by one owner of the property ever impinge on the other co-owners? in other words, can my mother become responsible for the debt incurred by her brothers because they co-own property? And when my brother and I inherit the home if the lean still exists, will the IRS only be able to collect from his portion? This is quite messy.
3 Answers from Attorneys
Re: Lien on property owned by 3 parties
The lien only attaches to the brother's interest. However, the presence of the lien may prevent you from refinancing or impair your ability to sell the property.
Re: Lien on property owned by 3 parties
It may depend on how title is held. If he has a 1/3 ownership in the property as tenant in common, the lien will only attach to his portion. If title is held in joint tenancy, the entire property may be liable.
Re: Lien on property owned by 3 parties
I agree with Mr. Schomer.
Also, it does make a difference whether your mother and uncles own the property as joint tenants or as tenants in common. However, you're better off if they are joint tenants, not vice-versa, because the lien will legally disappear when the debtor joint tenant dies (provided the joint tenancy predates the lien). See the case of Zeigler v. Bonnell (1942) 52 Cal.App.2d 217.
If the three of them hold the property as tenants in common, the lien will survive the death of the debtor brother and continue to affect the 1/3 interest passed on to his heirs until the lien is paid off or extinguised by lapse of time per Civil Code section 2911 or other applicable law.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
