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What happens to a child support lien upon sale of property, when the purchase is "subject to encumbrances"?
Anonymous5 views3 answers
I am selling property and the signed purchase agreement states "Subject to: easements, covenants, ...and encumbrances of record."
My ex is claiming to have a lien and escrow is threatening to pay the child support lien with proceeds of the sale. I offered to cancel the deal, but the buyer insists on closing. It was a distress sale, and the buyer gets a great deal. Unless "subject to" means the buyer is on the hook for the child support lien.
Or should the escrow close and the child support lien be ignored and DCSS could come after me outside escrow?
IF you are to receive any proceeds out of the transaction, THEN the lien for child support needs to be paid. Or if a new mortgage needs to be secured by the buyer then the lien needs to be paid. You have no ability on your own to force the subordination of the child support lien to any new 1st mortgage that would be needed to complete the transaction nor can you get around it by some other attempt to avoid it if you are in fact due to receive funds from the transaction.
You should consult with a real estate attorney to review the purchase and sales contract as well as any amendments and instructions to determine which liens are on the record and what are your contractual obligations and duties. Escrow can not unilaterally act it must be at the direction of the effected party.
What lien should or should not be paid is not a yes or no question anyone on this forum or anywhere can answer without the benefit of contractual and title review.
"Subject to liens and encumbrances " in and of itself does not necessarily define one way or another the parties obligations, terms or conditions of the contract.
Best of luck.
This requires a coordinated effort between title, escrow, and you the seller. You'll have to show your purchase agreement, escrow instructions, and preliminary title report to a real estate attorney to get a full consultation. Email or call an attorney now to get the answers you need.
