Any lien on any property that is registered with the county has to be removed prior to close of escrow. We use title companies in California to:
(1) Do an extensive title search to make sure all liens are clearly identified,
(2) Make sure all liens are paid off by escrow,
(3) Provide title insurance in the event something slips by.
No lender will lend on a property for sale until they are assured it will come with a clean title.
Thats a very good question. Usually, this is what we use title companies for. Anytime there is a real estate transaction, the title company checks on any liens, bonds, etc on the property. All such liens are cleared by title before the transaction can close. Please feel free to call or email me if you need any futher assistance.
Good luck :)
John & Sarena Villaescusa
Keller Williams Realty