Buying a home that currently have a water lien

[Tanisha Haughton]

I may buy a home with a $7k lien.

The price of the lien will be added to the purchase price. In total, the purchase price will be 30,000. This is less than value within the market, The seller wants to get rid of the home, it was inherited to him. However seller had squatters. I plan to sign an agreement of sale, then have my seller pay off the $7000 out of my pocket in order to remove the lien before I transfer the home into my LLC. Would you guys do the same ? ( By the way seller is my brother)

[John Underwood]

I would deduct the cost of the lien from the purchase price.

I would not pay the lien off till I owned it. 

I would not give the seller the money for the lien, I would personally do this or have your attorney do it.