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socrateaser
socrateaser, Lawyer
Category: Tax
Satisfied Customers: 37971
Experience:  Retired (mostly)
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I don't know if you can help with this or not. I am

Customer Question

I don't know if you can help with this or not. I am interested in participating in a tax deed sale for a property but it has a UNITED STATES DEPT. OF JUSTICE LES PENDENS and says that a Restraining order against the property was entered in the United states district court. The property is deemed restrained by order of the district court and subject only to further orders of the court or removal of the lis pendens by the US department of justice. Would this lien survive a tax deed?
JA: The accountant will know how to help. Is there anything else the accountant should be aware of?
Customer: No, not that I know of
Submitted: 22 days ago.
Category: Tax
Expert:  socrateaser replied 22 days ago.

Hello,

A Lis Pendens (notice of action pending) is not a lien. It's simply notice to the world that there is an action pending in court that could affect title to the property, so that anyone purchasing the property will be aware that a court may make an order that could effectively void the purchaser's interests in the property.

A property tax deed sale has priority over all other liens -- and, if a tax sale of the property transfers the deed to a new owner, then that transfer would be valid as against any actual liens. However, a restraining order, to the extent that it prohibits anyone from transferring title to the property without consent of the court would prevent any state government official from selling the property at a tax sale. Consequently, while the tax sale would be valid, doing so in violation of the restraining order would subject whomever conducted the sale to a contempt order from the court.

As you can see from my explanation, your original question and the actual answer are somewhat disconnected. The bot***** *****ne, however, is that a tax sale cannot proceed without obtaining relief from the restraining order.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.

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Customer: replied 22 days ago.
if I understand you correctly, if the sale goes forward and relief from the restraining order was not sought, but the county still sells the property, I would still have the title and any problems from the restraining order fall on the county and not me. The title is in no way clouded because of this restraining order, correct?
Expert:  socrateaser replied 22 days ago.

Not exactly. If the final judgment of the U.S. District Court effects the title of the property in a manner adverse to your interests, then your title could be rendered void as a result, after the tax sale has occurred. Cal. Civil Code Section 1214. Consequently, unless you're pretty damn certain that a final court judgment won't affect your title interest, then you don't want to purchase the tax deed.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Expert:  socrateaser replied 22 days ago.

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, I receive nothing for my efforts in your behalf.
Thanks again for using Justanswer!

Expert:  socrateaser replied 22 days ago.

I regret that I don't participate in the Justanswer phone call option. If you provide your email address, I'll be happy to contact you directly. Otherwise, someone else may choose to accept the phone call. If so, then I hope they can provide you with competent assistance.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.

Thanks again for using Justanswer!

Customer: replied 22 days ago.
If the government did get a final judgement, but we were already owners of the property would we get our money back.? Why would the final judgment carry over if the property had already changed hands? With the list pend on the property does it Cloud the title or are we able to acquire ownership and flip it quickly before there is a final judgment.? You have confused me with your first response and second. Both answers contradict each other.

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