Legal Question in Real Estate Law in Ohio
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.
1 Answer from Attorneys
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.