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What is a Partial Lien Release?

A partial lien release releases a specific piece of property from a recorded state tax lien. However, it does not release the lien in its entirety. The lien remains in effect against the taxpayer and continues to encumber other property the taxpayer owns or acquires in the future.

Sometimes, during short sales transactions, your client may not have enough funds in their escrow account to pay off our recorded state tax lien in full. If this happens, you may request a Partial Lien Release from us.

To request a partial lien release for your client, call the Lien Resolution Unit at 916.845.4350. If it is determined that a partial release of lien or subordination of a lien is warranted, we will ask for the following documentation to be submitted via overnight mail to the address below:

  • Letter of explanation.
  • Estimated closing statement.
  • Current preliminary title report that includes the legal description of the property.
  • Current appraisal.
  • Copies of all other lien encumbrances.
  • Documentation to substantiate all lien payoffs through this escrow.
  • Copy of the new deed of trust (for subordination requests only).

LIEN RESOLUTION UNIT MS A410
FRANCHISE TAX BOARD
SACRAMENTO, CA 95827

For more information about liens, go to ftb.ca.gov and search liens.

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