A Home we are buying is under Contract & 9 days from closing & there is a "potential IRS Tax lien" on the property...HELP!

We have a home under contract and we close in 9 days. The seller contacted the real estate company yesterday & told them that she received a letter from the IRS stating that they are going to put a lien on her home if she doesn't pay $200k in taxes due. The seller said that she didn't know anything about this, that it is her ex-husband's (or soon to be ex) tax debt & that it is the accountants & ex's fault. The seller said that her atty advised her not to sell (of course he did, b/c as soon as we close & she gets the $, she will have to pey the IRS...Right??).

Anyway, we said we want the house & for everything to continue as scheduled since as of right now there is no official lien on the home, just a notice from IRS that if she doesn't pay, they will put one on it.

My question is this: The title is going to the atty for a title opinion, so what is the likelyhood that we will be able to close on this house in 9 days with clear title? Am I right in assuming that the house does not have a lien as of right now & if it is clear of the lien until closing, then once we close & it is our house, we should be clear of any "potential lien" of the seller... correct? How long does it take for the IRS to put a lien on the home once notice is sent? - Is this your question? Add additional information
Answer this question Add to list

Answers (1)

Stephen J. O'Brien

Stephen J. O'Brien

Contributor Level 7
I'd say the notice of intention to file the lien puts you on notice and will likely survive the closing. Wait to see what will be the attorney's opinion. Do not buy the home if the title insurance makes the lien an exception to the policy.
0 0
Back to Search Results

Ask a Question

Get free answers from real lawyers.