Lis Pendens and Tax Liens

Where a title to property is disputed in a lawsuit, either party may record a lis pendens to put others (third-parties) on notice that there is a lawsuit pending. Lis pendens in essence means lawsuit pending and does not give the parties to the action foreclosure rights. Rather, it s a buyers beware notice to lenders or buyers that the title to the property is in dispute.

Tax Liens

A tax lien is an involuntary financial encumbrance placed upon property as a claim for payment. Tax liens are levied by local, state and federal government agencies. They may attach to any property owned by the taxpayer and will continue until the tax liability is satisfied.

Property taxes and special assessments are specific liens and government taxes are general liens. This means that if the property owner fails to pay a specific tax lien, it will affect only the parcel of land.

When a property tax is assessed against the property, a property tax lien for that amount is placed on the property. The property can be sold at a public auction, and in that circumstance, all other liens will be dissolved except the property tax lien and special assessment.

In California, real property is taxed at the local level as a percentage of the fair market value. When the property changes hands, there may also be an increase in these taxes.

Do you have questions regarding your lis pendens action? Alternatively, do you need more information on property taxes? If so, please contact Aziz Yellin LLP by phone at (408) 600-0726 or email us at admin@azizyellin.com.

This article is merely informational and is not intended to be used as legal advice. Use of any information from this article is for general information only and does not represent personal legal or tax advice, either express or implied. Readers are encouraged to consult Aziz Legal, or another attorney, for any specific legal matters.