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Updated 8 months ago,
Partnership selling a property, individual has tax lien.
I have a question, in regards to liens. If two people own a property ( they are both on the deed ) and they put the property up for sale. They find a buyer and its placed under contract. They buyer then goes to get a loan from the bank, and in the course of due diligence the bank finds out that one of the sellers has a tax lien judgement against them for $320k ( the property is selling for $130k ). So now the bank won’t give the buyer a loan until the lien is satisfied. So, since the property ownership is a 50% split between the both of them, then whatever is the net profit after the sale is completed, only 50% of that should go towards paying the lien and the other 50% should go to the other seller. Is this a correct statement ? Thanks so much for your time.