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N Cal Attorney
N Cal Attorney, Lawyer
Category: Real Estate Law
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Experience:  Since 1983
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Do I have to disclose that I have a real estate lien on the

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Do I have to disclose that I have a real estate lien on the house when I write (and sign) the listing contract with the real estate agent?

2nd question - Can I put in the listing contract that I have a lien against the house, so that if I cannot pay it off before the house sells the potential buyer (or listing agent) cannot sue me?
Was the lien recorded at the County Recorder's office?
Customer: replied 3 years ago.

I do not know. It is a state tax lien


 

I have to assume that the State did record it, so it would show up in a normal title search and the realtor will know about it, so you may as well disclose it. Any recorded lien will normally be paid off at the close of escrow, otherwise you would not be conveying what called clear title or good and marketable title. And that also prevents the buyer from suing over an undisclosed lien. The seller generally prices the property on the assumption that all recorded liens will be paid out of escrow. Otherwise the seller may end up having to put money into escrow to cover the liens or the sale will not close.

You can check at the County Recorder to verify if it was recorded.

I hope this information is helpful.
Customer: replied 3 years ago.

1. Is there a way to sell a house if it has a tax lien on it? I do not have the money to pay off the lien and there is not enough equity in the house to cover the tax lien.


 


2. If my Real Estate Agent finds a buyer but the house does not sell (because of the lien) - will I still need to pay the real estate agent / broker?

1. Is there a way to sell a house if it has a tax lien on it?

Yes but only is the lien is paid off at the closing.

2. If my Real Estate Agent finds a buyer but the house does not sell (because of the lien) - will I still need to pay the real estate agent / broker?

The broker will never find a buyer if the property has less equity than the amount of the lien. Brokers only get paid when a sale is concluded.

I'm sorry to be the bearer of bad news, but it would be a disservice to you, and unprofessional of me, not to provide accurate information.

 

The seller has a duty to disclose material information, so I believe you have a legal duty to disclose the lien to the broker, even if it was already recorded as a public document by the County Recorder.

N Cal Attorney and 6 other Real Estate Law Specialists are ready to help you
Thank you for the Excellent rating!
Customer: replied 3 years ago.

you are welcome

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