How can I get a levy judgment removed before I sell property? 2 Answers as of August 02, 2011Our father passed away in 2009 and left my older sister and I his home and property. We have had it on the market for almost 2 years and recently got a contract on it. When we went talk to Title Company approx. 2 weeks before our closing date, we found out that my sister has a levy judgment against her name. The home itself is free from any mortgage, liens, etc. Our problem is the Title company told us we cannot close on the contract until the levy is satisfied! It is a big mess as my sister has all the paperwork showing debt has been paid, but they are saying interest accrued still shows her debt way out of hand. Anyway, basically my question is this: Is there any way of her *gifting* me her share of the house so that I can follow through on this contract without her on the deed? And if so, what steps need to be taken to get this done so we dont have to lose this contract? Thank you
The Schreiber Law Firm | Jeffrey D. Schreiber
Gifting will not work. Once the judgment becomes a lien because she is in title, it is on the property and stays until removed by a full satisfaction of judgment form. Any transfer of ownership does not remove the lien. What it will take to remove the lien is between your sister and the lien holder as to how much. Otherwise she would have to go to court and spends months trying to show it is paid - and she may not be able to do so if she did not take into account accruing interest.
Answer Applies to: California