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Updated over 10 years ago,
Wholesaling: Who is responsible for paying liens/fines/judgements, the buyer or the seller?
When wholesaling a house, who is responsible for paying the liens on the property? I am in talks with a seller who wants $9,000 for his house, but says he owes around $3,000 in fines. Is the seller responsible for paying the fines before I can put it under contract, or is it my end-buyer's responsibility to pay the fines off?
And how does this affect how my offer when I put it under contract? Does my offer have to be $12,000 instead ($9K ask + $3K fines) or do I have to factor that into my asking price when I assign the contract? The spread on the deal is marginal as it is, and I'm trying to see if this one is worth pursuing. Obviously, there is more information needed to make an informed decision, but any advice would be appreciated, thanks.