Federal Tax Lien on Seller of PropertyMy fiance and I are trying to purchase property(land only), and just found out that the seller has ...

Question

Federal Tax Lien on Seller of Property

My fiance and I are trying to

purchase property(land only), and

just found out that the seller has a

federal tax lien against him. He has

already signed a purchase agreement

with us, but now wants to back out

of the deal - probably because he will

have to pay the IRS. Can we force

him to go through with the sale? Do

you think the IRS will help so that

they will get some of their money?

We are not sure how difficult it will

be to force him to close on this

property.

Answer

Re: Federal Tax Lien on Seller of Property

You can bring an action for specific performance. If you are successful, the court will order the seller to convey title.

If the tax lien is for more than the proceeds the seller will receive from the sale, the seller will have to come up with the difference. If he has no money, you will have to hope the IRS will release its lien for the sale proceeds.

You need to speak with an attorney about filing an affidavit of facts regarding title while you investigate the IRS position in this matter.