by Phil Hoover, Real Estate Broker

Weird Real Estate Stuff: IRS Lien Kills Sale

Back in the 1980s, in Roseville, California, I was working with a young builder who wanted to buy a lot and build a spec home.

Even better, I had a buyer lined up for the home he planned to build.

We found a nice lot for $36,000, got it into escrow, and my builder/buyer signed final papers as we prepared to close on the lot.

Title companies are pretty smart; they always run a last-minute lien search on the buyer, seller, and property before closing an escrow.

This time was no exception.

On closing day, I got a call from my escrow officer, informing me that the IRS had filed a lien on everything the builder owned the day before closing.

That killed the deal because the title company couldn’t issue title insurance with the IRS lien in existence.

 

May 19th, 2013 Posted in Weird Real Estate Stuff Print This Post Print This Post

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