What is a property tax lien?

A property tax lien is a legal notice placed against a property that indicates that the owner of the property owes unpaid taxes. When a property owner fails to pay the property taxes due to the local government, the government may record a lien against the property. This lien serves as a public record that notifies potential creditors that the property is not owned outright and any unpaid taxes must be paid before title to the property can be transferred. A property tax lien is a claim against a property for unpaid taxes. If the property taxes remain unpaid, the lien becomes a public record. This public record usually lists the amount owed and the date of the tax lien. This information may appear on a potential buyer’s credit report or may be listed when conducting title searches or other background checks. In California, unpaid property taxes become delinquent after 5pm on the last day of the fiscal year. The government may then levy a lien against the property. The lien may be sold to a third party, such as a collection agency, or it can be provided to the local county treasurer-tax collector, who may then pursue payment on behalf of the government. Generally, collection costs, delinquent interest, and penalties are added to the amount of unpaid taxes that must be paid. In California, the property tax lien acts like a lien on personal property and cannot be released until all the delinquent taxes, penalties, and interest are paid in full. Once the lien is paid in full, all parties involved in the lien must be notified and the lien must be removed from the property records.

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