Does a Franchise Tax lien survive a Trustee sale in California?


#1

Does a Franchise Tax lien survive a first position loan that is being foreclosed up on in California?


#2

Hi Ed,
If the lien is dated prior to the foreclosing deed of trust then it would survive. If recorded after the deed of trust then it would be wiped out.


#3

Thanks for this information. I appreciate your input… Ed


#4

I bought a duplex at auction.com on 8/2/11. I was advised that all liens, other than tax liens. were extingushed at the time of sale. I later found 4 small city liens, 3 $100 abatement liens and one $286 lien for “uncollected business registration fees” were filed against the property. The city says the liens survived the sale and I owe the money. Auction.com said that these are not tax liens and I do not owe the money. What is the California code section that covers this situation. I believe it is in the Government Code. Thank you.
Walt


#5

Hi Walt, CA Government Code section 38773.5 gives a city the authority to pass an ordinance that allows the cost to abate a nuisance to applied as a special assessment against the property on the tax bill, thus arguably giving it senior status. But that should only apply if there is a local Municipal Code providing for the special assessment and if the assessment was actually levied against the property.


#6

I am buying a home at a trustee sale. This property has 4 state franchise tax liens against that go back to 2002 Am I required to pay these? if so am I required to pay all the interest ? ?Are these liens assumed by me when I purchase the property? or does the current lender pay these off when I purchase this property?