If your property has a lien against it, can you sell, trade or donate the property to a family member?

If your property has a lien against it, can you sell, trade or donate the property to a family member?


Real Estate Questions

in Louisiana Posted 5 years, 3 months ago

12 Responses

Profile Picture of ANDREA G TILLIS
ANDREA G TILLIS

Attorney at Law at LAW OFFICES OF ANDREA G TILLIS

No problem, If it has not been "Red-tagged", then that means it is still "Inhabitable". You can take the steps I suggested after giving written demand to the landlord for the repairs, or else you will have the repairs done and deduct cost from rent, or withhold rent and deposit it in escrow account each month.

Please be kind enough to indicate that my Answer was helpful, I would greatly appreciate it.

ANDREA

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Profile Picture of Frank Natoli
Frank Natoli

Founding Partner & CEO at Natoli-Lapin, LLC

Hi,

The lien perfects the security interest in the property. If you transfer it to someone else the lien holder has a cause of action agaisnt that person to take back the property even if they do not know about the lien because the lien filing serves as notice.

Not a good idea.

Consult a local lawyer to discuss all your options.

All the best,
Frank
www.LanternLegal.com

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Profile Picture of smrb smrb

smrb smrb

the rental i live in had a lien placed on it due to non compliance to bring 5 violations listed as substandard conditions on the notice to comply. The LL has been told to submit a permit application and plans in order to begin repairs. It has been 9 months since LL was notified by me and 4 and a half months since the notice to comply.Considering CC1942.4.a is effective can the LL keep asking for rent using a three day to pay or quit notice since I have been with holding rent till repairs are made since 5/10 (rent due on tenth of each month) and he has not made any repairs or attempted to . Since 1942.4. (a) states he cant demand rent, collect rent , increase rent or serve eviction notices if.......and all conditions are met. They are. How long can I live in the house if it has not been condemned , the LL makes no effort to remedy , the lien is in place and without paying rent because to the LL's negligence to comply?

Profile Picture of smrb smrb

smrb smrb

In the other post I submitted on this matter I forgot to mention that I payed rent here for 8 years and never missed a payment up until I with held rent in May.

Profile Picture of Frank Natoli
Frank Natoli

Founding Partner & CEO at Natoli-Lapin, LLC

Hi, you are best advised to consult with a LL/tenant lawyer in your area to discuss all your options. There are any number of state law regs that need to be considered here.

All the best,
Frank

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Profile Picture of ANDREA G TILLIS
ANDREA G TILLIS

Attorney at Law at LAW OFFICES OF ANDREA G TILLIS

Hi, Thank you for your question,

In answer to your question, it depends on the lien. If the encumbrance is a mortgage which you gave a lender as security for the repayment of your loan and the mortgage has a "Due on sale" clause, then if you sell, transfer, or otherwise dispose of the property, the lender has the right to call in the loan, i.e., demand payment of the loan in full. This is because a "Due on sale" clause means that payment in full of the mortage loan is "Due" upon any "sale", transfer, or other disposition of the property.

If, however, the lien on the property is a judgment lien filed by a creditor who obtained judgment against the owner, or any type of lien, other than a mortgage lien, then the owner can sell, transfer, or assign the property, but the buyer, transferee, or assignee will take "subject to the lien" which means that the new owner must pay off and satisfy the lien, otherwise he risks losing the property if the lienholder decides to sell the property in order to satisfy his lien.

Hope this answers your question,

ANDREA

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Profile Picture of ANDREA G TILLIS
ANDREA G TILLIS

Attorney at Law at LAW OFFICES OF ANDREA G TILLIS

Hi, again,

I did not see your additional information when I posted my Answer. My Answer is still correct, but I thought you were asking the question as the owner of the property.

If you are the tenant, you must continue to pay rent because the lien issue is a matter between the landlord/owner of the property and the municipality which placed the lien on the property, However, you do have some recourse. If the defects which require repairs affect that part of the property for which you pay rent you can do either of two things. In both instances, however, you must give written notice to the landlord demanding that repairs be done. Then you can have the repairs performed and deduct the cost of the repairs from your rent; or Two, you can withhold the rent until the landlord performs the repairs. If you choose to withhold the rent, you must deposit the amount of your monthly rent into an escrow account each month until the repairs are done and tell the landlord that you have deposited the monthly rent into an escrow account. In either case, however, the law does not permit a tenant to live rent free.

If the landlord sells, assigns, or transfers title with the liens still on the property, the buyer, assignee, or transferee will take "subject to" those liens and will have to satisfy them.

ANDREA

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Profile Picture of smrb smrb

smrb smrb

The lien was filed due to non compliance of a written notice of sub standard conditions.

Profile Picture of ANDREA G TILLIS
ANDREA G TILLIS

Attorney at Law at LAW OFFICES OF ANDREA G TILLIS

If the property is uninhabitable, then you would have to leave the property. The law does not permit a tenant on the one hand to complain about the condition of the rented property and that the landlord's
failure to make the necessary repairs make it uninhabitable, and on the other hand to remain at the property without paying rent.

I am sorry that I cannot give you the Answer you were hoping for, or a more favorable one, but I have an ethical obligation to give only correct Answers and not mislead you,

ANDREA

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Profile Picture of ANDREA G TILLIS
ANDREA G TILLIS

Attorney at Law at LAW OFFICES OF ANDREA G TILLIS

If the property is uninhabitable, then you would have to leave the property. The law does not permit a tenant on the one hand to complain about the condition of the rented property and that the landlord's
failure to make the necessary repairs make it uninhabitable, and on the other hand to remain at the property without paying rent.

I am sorry that I cannot give you the Answer you were hoping for, or a more favorable one, but I have an ethical obligation to give only correct Answers and not mislead you,

ANDREA

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Profile Picture of smrb smrb

smrb smrb

Sorry I gave you wrong info because the property has numerous substandard conditions but it has not been red tagged by the code enforcement.

Profile Picture of ANDREA G TILLIS
ANDREA G TILLIS

Attorney at Law at LAW OFFICES OF ANDREA G TILLIS

If the property is uninhabitable, then you would have to leave the property. The law does not permit a tenant on the one hand to complain about the condition of the rented property and that the landlord's
failure to make the necessary repairs make it uninhabitable, and on the other hand to remain at the property without paying rent.

I am sorry that I cannot give you the Answer you were hoping for, or a more favorable one, but I have an ethical obligation to give only correct Answers and not mislead you,

ANDREA

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Profile Picture of smrb smrb

smrb smrb

Sorry I gave you wrong info because the property has numerous substandard conditions but it has not been red tagged by the code enforcement.

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