Legal Question in Real Estate Law in California
When purchasing a tax lien property do the existing mortgages and other liens follow the property?
3 Answers from Attorneys
The tax assessor's deed conveying tax-defaulted property following a tax sale transfers title without covenant or warranty. Existing mortgages and other liens will be extinguished, or not, depending uon the priority they had relative to the tax lien. A purchaser of tax-defaulted property is advised to do his or her own research and obtain assurance of title insurability prior to bidding. See Revenue & Taxation Code section 3805.
I need to amend my previous answer. While a tax-sale deed technically is a quitclaim deed, by law the tax lien is superior to most other liens including those of private origin, regardless of time of recording. Therefore, in practical effect, a tax-sale deed from the tax collector to a buyer conveys good and clear title unless there is fraud, an error in the wording of the deed, or excepting easements and certain other liens specified in Revenue & Taxation Code section 3712. I apologize for any confusion caused by my earlier answer, which was based on good authority but incomplete research.
A tax lien is always a superior lien. It conveys title free of other encumbrances, except other tax liens. The government always wins in the end. A sale of property at a tax foreclosure sale conveys title free and clear of any encumbrances, except liens for taxes and assessments. �The deed conveys title to the purchaser free of all encumbrances of any kind existing before the sale �.� (Rev. & Tax. Code � 3712.)