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LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 37855
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I am about to sign a purchase agreement on a Sheriff's Sale

Customer Question

I am about to sign a purchase agreement on a Sheriff's Sale property. The condo is assessed at $108,000. It was purchased at the sale for 47,091. The deceased owner owed the bank $88,500. The government also had personal leins against her for over $600,000. My concern is the 120 days that the government would have to come back on the property. The current seller is a flipper and tells me that the odds are almost 100%, that they would not, because it only sold for $47,000. I need some outside advice.
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  LawTalk replied 2 years ago.
Good afternoon,
I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.
You are correct in the fact that the government has 120 days after the sale to redeem the property by paying you the amount that you paid for the property.
As you got the property for less than half its value and there is arguably another $60,000 in equity in it, I can't say that I agree with your flipper that the government will not be interested in redemption.
In fact as the equity in the property exceeds 50% of its value, I see this as a property that would interest the governmental tax organization.
You risk little so long as you don't try to resell within the redemption period and if you have confirmed that the IRS or other governmental agency owed the money from the deceased was actually given notice of the sheriff's sale.
Then again, if the government has personal liens against her and they didn't actually lien the property (you don’t say either way), then there would be no redemption.
You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.
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I wish you and yours the best in 2015,