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Purchased property with Federal tax lien against the home.

Asked over 3 years ago - Atwater, OH

I purchased some land at a County Auction. The property was going for $79,000 and I bought it for $1 But there is a Federal tax lien against the home. The owner did not pay 7 years of federal taxes. The last year he didnt pay taxes was 1993 The last chance for refiling was 2005. Will this lien fall off? Will they take it off because I am a different owner who bought it from they county? I am only 22 and I do not know if I did a bad thing. Also I have been looking at investors to purchase the property for a small amount and let them handle the lien. Is the the better route?

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Attorney answers (2)

Barton Sheldon Strock

Reputation Level 10

Answered over 3 years ago. Real Estate Attorney in Fort Lauderdale, FL.

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First, federal tax liens stay on the property when it is transferred unless they are released at the time of sale. That is why we do title searches and title insurance is issued to insure against these liens. That being said, the "last date to refile" is usually the end of the lien. That is its statute of limitations. If the IRS has not refiled the lien by that date the lien has expired.

I suggest you consult with an attorney or accountant in your area. YOu may have a valuable property there with no lien on it.

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Gabriel Cheong

Reputation Level 15

Answered over 3 years ago. Divorce / Separation Lawyer in Quincy, MA.

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Note that I am not licensed to practice in your state.

Federal tax liens are secured by the property itself. The governement has the right to foreclose on the house if the lien does not get paid, even if it has a new owner. Depending on how much the tax lien is, it might have been a bad investment or a good investment either way.

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