West Palm Beach FL Gap Lien on property under contract

[Jay Lee]

BP,

Have a question for investors.  Currently have a multi-unit property under contract.   The property came back with a few utilities bills that were liens.  But we also found out there is a code enforcement fine that has not turned into lien as of yet.  The fine is over 40k.   So the title company is telling us that this is a gap lien (never heard of that term).  But they said these liens were recorded after a foreclosure and they should have been wiped out.   I advised we have a certificate from the city saying these fines are applicable.  I advised them can't proceed until they have been taken care of.  Am I missing something, why would a title company tell me don't worry about the fine?  Other than to get paid...

[Rick H.]

Liens get wiped off title, not necessarily wiped out.

Thus means the obligation to the municipality, agency or taxing authority may still be unsatisfied and that means it ain't going away unless you mitigate. 

C/E wants compliance. City wants revenue. You are at risk of becoming the "stuckee" (a technical legal term for getting screwed by city). 

I would ask C/E what they want for compliance and negotiate a monetary reduction and get it in writing.