Real Estate inheritance with lien against previous owner

[Troy Welch]

I have a question about inherited property which has a lien against it- from previous owner- and I have no idea how to resolve or where to start.

First off, I have vague information but will try to explain it as best as I can. I am getting this info 2nd hand from my 78 year old father - who knows what the whole story is.

My grandfather passed away in 2019. He owned 3 lots in east Texas. When my father went to sell the property, the title on 2 of the lots were clear but one was not.

As I understand it, a child of the previous owner - the owner my grandfather purchased from - had back taxes so the IRS placed a lien on the property. I don't understand how the previous owner could sell the property with a lien on it. It seems like that would have had to be cleared at the point of sale by one party or the other, right?

My father said he has to pay property taxes yearly on the property but he can't sell it?

Where do we start to resolve this title/lien issue?

[Wayne Brooks]

@Troy Welch Step 1…. get a title search, you can order one online for $50-$75.

The IRS may well have placed a lien if the Owner on title owed money to the IRS.

There a number of ways your grandfather could have bought the property with an IRS lien still attached to it….Quit Claim deed, etc. That doesn’t really matter, the only thing that matters is if there is a valid lien on it now. 

BTW, IRS liens are only valid for 10 years, if not renewed. 

Bottom line, find out if there is a lien…if the lien is for more than the property is worth, then let it go, simply stop paying the taxes, let the county sell it off for taxes.

If there is no valid lien, then sell it. 
Again, get a title search.