Real Estate Investor · Cary, IL · Member since 2014 · 23 posts · 3 votes
Before getting hit with a tax lien or back taxes in a property at the closing table.....Is there a way to find out before hand? I suppose you would ask the owner and hope they know.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y
@Travis Avenarius I don't know how in your state and it may vary by county. Tax bills are available online in Baltimore City. Search your county website for property tax and tax sale.
However in your situation it probably doesn't matter. Most contracts will say that the seller provides free and clear title at the time of settlement. any back tax bills are paid out of the sellers proceeds. It normally doesn't add to your cost. It only reduces the amount the seller gets.
Rental Property Investor · Kansas City, KS · Member since 2014 · 604 posts · 222 votes
11y
@Travis Avenarius ...or will be honest about it and tell you. I can't say for sure in your county/state but where I am here there is an online court records search where you can find information like that. A State Tax Lien or Judgment Lien will show up in local District Court records but you may have to access Federal court records for a Federal Tax Lien. Sometimes there will even be an affidavit or actual lien document filed with the land records. Different localities do it in different ways.
It wouldn't hurt for you to take a trip to the courthouse. Let the clerk know what you're looking for (i.e., I'm thinking of buying a property and would like to know about judgment/tax liens on the property) and in many cases they'll show you how to find what you're looking for.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y
@Travis Avenarius I don't know how in your state and it may vary by county. Tax bills are available online in Baltimore City. Search your county website for property tax and tax sale.
However in your situation it probably doesn't matter. Most contracts will say that the seller provides free and clear title at the time of settlement. any back tax bills are paid out of the sellers proceeds. It normally doesn't add to your cost. It only reduces the amount the seller gets.
If buying an asset at auction, such as a county tax sale, you need to understand what you are bidding on.
If a tax lien, there may be super priority liens that survive such a sale. Junior lien holders (secured lenders with recorded mortgage or TD) may be wiped off title but have an interest in redeeming property if allowable in your state.
If a tax DEED sale, there may be similar super priority liens that would remain as baggage on your hard-won acquisition.
Judgment creditors may have a claim but have not perfected their interest by recording an abstract of judgment in the county where the subject oroperty is located.
Now, consider reverse engineering a property and determining if buying the debt at discount might offer you another way to make a profit.
As for asking the inner about limbs: All sellers and liars and all buyers are thieves.