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News & Press: Court Cases

Garbage Collection Liens

Tuesday, June 18, 2019  
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Kahan v. City of Richmond
Cal.App. 1st Dist. (A150866) 5/23/19

The court held that a purchaser at a trustee's sale under a deed of trust took title subject to a garbage collection lien that recorded shortly before the sale. Gov. Code Sections 25831 and 38790.1 expressly authorize the lien to have the super-priority status payable with property taxes, so the lien was not wiped out by the trustee's sale. The purchaser was not a bona fide purchaser because he purchased at the trustee's sale with notice of the recorded lien. He also was not a bona fide encumbrancer because in order to have that status, he would have to allege facts showing the deed of trust that foreclosed was obtained after the garbage lien existed but before it was recorded.


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