Inheritance Tax on purchased property

1 Reply

I purchased a vacant land property in PA for cash from someone who inherited the property from her parents.  I used a title company to close and purchased an owners policy title insurance.  I am reselling the property for almost double what I paid and the buyer chose to use a different title company.

The new title company recently contacted me and the title company I used to purchase to ask for proof that the full PA inheritance tax was paid and if not they need a letter of indemnity.  What is going on here and how can I get this property sold?  Am I going to be responsible for inheritance tax on a property that I didn't inherit?

@Joe P.

Yes, there are inheritance tax liens and sometimes it will apply in these situations if you don't deal with it correctly. I can't tell you whether it applies to you since I don't have all the facts. But this is pretty basic title stuff. So hopefully your old title company did this correctly. Ask them to provide documentation on this matter. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

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