Legal Question in Real Estate Law in California

Property can always be sold subject to liens if the buyer is willing to accept the property and pay for it without the liens being cleared. Where the seller disputes a lien, they may obtain a bond or special title insurance in favor of the buyer that will pay off the lien if the seller fails to successfully fight it. This is not uncommon in the case of disputed mechanics liens on new construction, for example. If the sale is a foreclosure or trustee's sale, the issue of lien priority also comes into play. If the foreclosing lien is senior to the HOA lien or any other lien, those liens are wiped out by the foreclosure (with the limited exception of certain tax liens and other rare claims and liens that have special privileges). Once wiped out, the person who owned the property when they were incurred usually remains personally liable, but the new owner takes the property free and clear of the junior liens.