Legal Question in Real Estate Law in California

It sounds like you are talking about documents received before the sale closes. In that case the escrow instructions should reflect that. Standard form buyer's escrow instructions used by all title companies will provide that title must be delivered clear of encumbrances except those agreed to remain (such as the automatic tax lien that goes in place every July 1 until the taxes are paid in December and April) before the escrow holder can release funds to the seller. Although the buyer won't get a copy, the seller's instructions must direct the escrow holder to pay the liens/loans out of the escrow funds before disbursing the balance to the seller. Without matching escrow instructions, the escrow holder cannot close.