Saturday, 25 January 2014

Is a contract sale of a home legal if their is a tax lein on the house at the time of signing?

Question

Is a contract sale of a home legal if their is a tax lein on the house at the time of signing?



Answer

Yes, a seller can sign a contract with a tax lien on the property. However, unless the buyer has agreed to buy the property subject to the tax lien, the seller will not be able to close until they clear up the lien.



Answer

Absolutely. The lien can be paid out of the seller's proceeds at the time of closing.



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