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Richard
Richard, Tax Attorney
Category: Tax
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Experience:  29 years of experience as a tax, real estate, and business attorney.
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TO WHOM IT MAY CONCERN: I have a valid contract on a piece

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TO WHOM IT MAY CONCERN:
I have a valid contract on a piece of propert located in St. Mary's County,Md. Rt 236 and Ryceville road. The owner now says there is an IRS lean on the property. What can we do to but the property.
Sincerely,
XXXXX XXXXX
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good morning. Are there other liens on the property? How much is the IRS lien? How much is the purchase price of the property as set forth in your contract? Thanks.
Customer: replied 3 years ago.


Not to my knowledge.

Thanks for your response. This is not going to be a problem; property frequently has one or more liens on it prior to sale. The key is that the lien gets paid at the closing. The lien will not invalidate your right to purchase the property. The seller is obligated to deliver title to you free and clear of the lien. Thus, what happens is that at closing, the title company will use whatever portion of the purchase price is necessary to pay off this lien so that it will be released. The seller is then only entitled to whatever portion of the purchase price remains after the payment of that lien.



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Customer: replied 3 years ago.


I think the IRS lean is more than what the contract price is !!!!

Thanks for the clarification. That's not a problem either. In that case, the IRS will simply get paid all the proceeds that are available and then release its lien on the property at closing. You will still get a clean title. The seller will simply be personally obligated to the IRS for the shortfall.
Richard and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Thank you for your help------------

You're very welcome...it's my pleasure!
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