Nuisance Lien for $4k Because of Broken Facade - Vallejo, CA

[Robert Jensen]

I am in escrow with a purchase in Vallejo, CA. The title search revealed two liens (2018 and 2019) regarding a falling down facade in the front (about 2 feet off the ground below the front window). These amount to about $4k. 

Normally I think the seller would deal with this, however, it is a HUD as is home and the only way they will satisfy the liens is if the problem is fixed. However, according to the agent they are not allowed to touch the property. They cannot even clean it since its an as-is foreclosure.

Has anyone been in the situation? Do I have any options other than pay the fines?

Violation 7.45.030

https://library.municode.com/c...

[Shannon Wright]

In my experience, this oftentimes becomes a buyer problem BUT you have options. You can also still close and those 2 liens can be exceptions on the title insurance but every REO contract is different.

The key difference is "as-is" vs. "clear title" ...As-is implies no repairs are being done but it is a fair expectation (and likely set out in the contract) that you will get title insurance as a part of the closing and "clear title" is not available because of those 2 liens, so the argument could be made that the seller has to fix the issues so that you can get clear title insurance. You are not requesting "repairs" in breach of the as-is portion of the contract, you are requesting "clear title" which repairs happen to be required in order to get clear title. Repairs are secondary to the issue at hand.

If the fence was never made a lien, then it would be a repair under the "as-is" portion and would not affect your ability to get clear title. It's almost to your benefit that the liens are there because you need them resolved in order to get clear title and clear title is the seller's problem, even in REO situations.