Demo Lien - Dekalb County, GA

[Rob Wilcox]

Hello BP Community, 

Our company is dealing with a tax lien situation that is a first for us and worth 1) asking for advice and 2) sharing for the benefit of this community. 

We purchased a tax deed for a vacant lot from a wholesaler (Tax lien was purchased at Auction in September, 2016). 

At the time of purchase, we needed to wait 30-days before we could initiate the quiet title action (due to the 12-month right of redemption period). 

Prior to purchase, we did a title search and it was "clean" according to two title attorneys. 

We wait the 30-days, initiate the Barment and Quiet Title Action, all is going well. We pay the taxes for 2017 (and the late fees for previous years). 

A few months later, we are approached by a broker to buy the lot, making an offer contingent to the removal of any demolition lien (for the demo of the house around 2014). 

This is the first we've heard of this lien...we consult with multiple attorney's, including the attorney who is handling our quiet title action, we are assured that this lien will be wiped out by the Quiet Title action due to the Tax Lien being a Superior Lien. 

Fast forwarding to the end of all this, we are about 6-months into this quiet title action, the county is claiming that we owe the lien (about $14k), the broker still wants to buy the property but is convinced (through his experience and consultation with his own attorney's) that we will have to pay the lien. However, our attorney handling the quiet title action is saying that we "should" be fine due to the legal argument an superiority of our tax lien (thus not having to pay the lien). 

In general, this isn't likely to be a good financial deal for us, but it is a GREAT education and we are enjoying that experience. We would like to resolve this situation, not lose too much money due to legal fees and lien payment. 

Note: We did not buy title insurance due to the low cost of the tax lien purchase. 

Anyone have the experience to confirm if this lien will be our responsibility or if it will be wiped out by the tax lien? 

Any, for those of you buying a vacant lot at tax sale, this is worth researching!

[Wayne Brooks]

It will be in the state statutes, and prior case law.....should be pretty cut and dried. I don’t know GA laws. Some cities will try to strong arm/scare you into paying even if the laws wiped them out.