Legal Question in Real Estate Law in California

Re: Seller forced to sell

How much is owed on the tax lien? Has escrow closed? If not, he is not a buyer in possession, he is a renter.

You have a definite problem, and should seek local legal advice from an attorney knowledgable in real estate contracts and tax law.

Re: Seller forced to sell

Your escrow officer should be able to help you with this. If the lien does not exceed the equity in the house, it should be paid off out of escrow and buyer will have good title.

You should see a tax attorney or tax accountant about the lien.

If the lien exceeds the tax you really owe, you can subsequently file for refund of the excess.

The tenant remains a tenant until close of escrow. He is a buyer in possession in at least one sense of the term (equitable title passes when the contract of sale is signed and the last contingency is removed), but 'buyer' is not the same as 'owner' and until the deed is signed and delivered he is still a tenant for all practical purposes.

When the tenant becomes the owner through receipt of the executed deed, the lease merges into the ownership by operation of law; an owner with current right of possession cannot be his own tenant.

Re: Seller forced to sell

You should never have allowed him to take possession before the close of escrow. As long as title remains in your name, he is a tenant. You can evict him if he refuses to pay rent.

If the lien showed up after his inspection contingency expired, you probably have a problem. If it showed up before, you may have a claim against him for failing to close. See a real estate attorney experienced with litigation.

Re: Seller forced to sell

Your question in cuts to me the did not have any licensed real estate broker a Jew in the preparation of your real estate sales agreement. No war, did you use a former agreement such as the CREA form. I would have thought you would've learned that you can't do it yourself. The lien has nothing to do with the occupancy or Zvi requirement to pay "rent" and utilities. I don't even understand why the buyer is already in the house!!!!! Get yourself a real estate attorney yesterday and he/she will probably solve your problem quite quickly unless you screwed up so badly because you didn't have professionals aiding you in the first place. The problem is I can tell how screwed up that really is from your question. I am in the San Francisco Bay Area and practicing real estate law for over thirty years. If you wish to consult with me I am in 925 -- 945 -- 6000.

Re: Seller forced to sell

It appears financial concerns are a great problem, however, I believe you need to contact an attorney asap re sale and re your tax situation. He can sue for specific performance under the contract of purchase. You are entitled to rent, however, until close. Need more info re tax, equity, etc., etc. Please call to discuss. I can also then refer you on to a tax attorney/specialist if you wish. Don Holben 800-685-6950