Looking a property that is in foreclosure and just found out the state has just put a lein on it due to seller not paying state income tax. How can I find out if the IRS may have a lein on the property? Can the IRS come put a lein on the property after we have closed on the sale?
Thanks in advance, Mark
The IRS doesn't place liens on property. Instead, they record a general lien against the taxpayer and that lien attaches to all properties owned by that person or entity. Simply run the owner's name in the grantee/grantor index at the county recorder or clerk's office (wherever deeds are recorded) in the county in which the property is located and look to see if any IRS liens have been recorded. Watch for releases, too, because it's not uncommon for some people to get an IRS lien and pay it off, then get another one so you'll need to cross-reference the releases with recorded liens to see which are still active.
Since general liens are recorded in the owner's name, any IRS lien recorded after you buy the property would automatically attach to all properties owned by the person but wouldn't attach to the one you bought because the taxpayer doesn't own it anymore once you've bought it.
great info. Thanks, I will get right on it.