A question about tax lien and how it affects home sale

[miamicuse]

I am looking at a property and the seller's agent told me the closing cannot happen until June 1 2006. It's a vacant house. When I asked why he said the current owner is very old and in a nursing home and did not even know there is a lien on the house, that he has sold the house once before but the title search came back with this and the deal fell through. He said it should be OK because the 10 year anniversary is May 18 2006 so a June 1 closing date is realistic. What does this mean - 10 year anniversary? Does a tax lien expire after 10 years?

Thanks,

MC

[robson]

Yes it does - unless an attempt to foreclose on the owners mortgage for taxes owing was made at any time during the 10 year period. Don't listen to the seller's agent - listen to your lawyer.

[James]

This would depend entirely on the law of the state that the home is located in. You must ask a lawyer in that state.

--James--

[robson]

i think it's a federal law

[Christian Fox]

This will entirely depend on where the house is located, and what the tax lien laws are. Ignore what the realtor says, and talk to your lawyer to ensure that you get the property free and clear of any liens.

[Jim McLaughlin]

You have a Florida specific question.

You are dealing with the most significant investment you will ever make.

Get your advice from a Florida licensed lawyer who retain who specializes in real estate.

The seller's agent owes you no "duty" and if the seller's agent's explanation is wrong, you have no recourse. Don't rely upon anything you get in a newsgroup.

[Jim McLaughlin]

NO!

[Newsgroup]

Talk to a tax or real estate attorney. It probably depends on the type of lien, how much and to whom.

[miamicuse]

get the property

It is in Miami-Dade County Florida. But is this anything I should worry about now, or is this normally I think something that is standard procedure - I mean I would have to pay for a title search as a contingency about securing a mortgage anyways and if for some reason the title does not clear, the bank will not approve the loan and I should be free to walk away - I think. So what I am wondering is, is there anything specific that I need to worry about at the stage of written up an offer, assuming I write it up with a contingency of getting a mortgage loan and right to inspect.

Thanks,

MC

[Rusht Limpalless]

[Tom]

TG.

[Bob]

If you're trying to buy houses and turn them over for a profit, you need to educate yourself about the laws in your state. You can't just listen to a realtor. In my state, a 2nd lien expires after 5 years, but it can be easily re-attached before it expires.

[James]

This is totally useless and irrelevant information. The guy lives in Florida, and you give him advice about Canada, an entirely different country !!!

Can't you even read ???

--James--

-------------------

[Harry K]

Although a tax lien is the most common, liens are not always for taxes. He doesn't specify what the lien is for.

Harry K

[Frank Boettcher]

It is the sellers obligation to deliver a clear title. That should be in any standard contract, make sure it is there before you move forward. If the property is clouded by a lien you do not have a clear title.

I once contracted for a property that had an egress restricting strip that had both city and county tax liens, Had individuals who had "bought" the property for delinquit taxes, required an application for subdivision (usually has to be approved by all adjacent property owners befoe a planning commission will approve). In my youthful exhuberance, I attempted to get the necessary quitclaims and agreements to clear the title and divide, even though it was the sellers obligation. Three months, fifty phone calls, and several meetings later, I gave up. As far as I know that title is still not clear and this was thirty years ago.

Proceed with caution.

Frank

[CGB]

I think you can pretty much count on tax bills lasting forever.

The presence of a tax lien on this property doesn't mean that you can't buy it now. What can be done, AFTER hiring a lawyer, you get the government involved in the transfer, and as you buy the property from the current owner the government takes your money, removes what it needs then gives whatever is left, to the tax-deliquent seller. The tax bill is paid. The title (assuming no other liens) is clear. Handled with a lawyer, this should be no problem.

If the tax bill exceeds the purchase price, that's another problem.

Also, if the seller is "quite ederly and in a nursing home," remember the old adage that it's difficult to get blood from a turnip! If all ends are not tied up and you think the seller can be counted on to handle them, remember the adage.

Chet

[Pop]

: > This will entirely depend on where the house is located, and what the tax : lien laws are. : > Ignore what the realtor says, and talk to your lawyer to ensure that you : get the property : > free and clear of any liens. : : It is in Miami-Dade County Florida. But is this anything I should worry : about now, or is this normally I think something that is standard : procedure - I mean I would have to pay for a title search as a contingency : about securing a mortgage anyways and if for some reason the title does not : clear, the bank will not approve the loan and I should be free to walk : away - I think. So what I am wondering is, is there anything specific that : I need to worry about at the stage of written up an offer, assuming I write : it up with a contingency of getting a mortgage loan and right to inspect. : : Thanks, : : MC : : Earnest money

[Oren]

In Florida I used Lawyers. I haven't in years in Nevada. A good title company, title insurance, etc. If you inherited the property; lets say, the cloud would still be on the property. A clear title is necessary in the end. The house I live in now required a court order, and this was the day of closing. The court was in California, but one of the owners was not mentally capable, both were in Nevada. The title company's lawyer missed this point so the closing could not occur until the court ruled to allow the co-owner (spouse BTW) to close the deal and record a new title.

Oren "My doctor says I have a malformed public-duty gland and a natural deficiency in moral fiber, and that I am therefore excused from saving Universes."

[HeyBub]

Title insurance. Title insurance. Title insurance. The good kind.