If you have unpaid debt, a tax lien could be put on your home to ensure the money is paid when you sell your house. The federal tax lien has to greater then the amount of equity in the house. Where can you find a property tax lien? A property tax lien can result in the government taking your house and selling it. If you are planning on selling your home, and you have a lien on your property, you may be required to take certain steps in order to complete the sale of your house. If you fail to keep current on your property taxes or other municipal charges, like a sewer or water bill, the past-due amount becomes a lien on your home. As a lien on the property, the taxing authorities can sell off the rights to collect on the amount owed and the tax buyer can, after a certain amount of time, become the owner of the property. As you can imagine getting the certificate of discharge is easier said then done, especially when things move at the “speed of government.” When you’re selling the house, the lien amount is added to your expenses during the closing. Local governments rarely forgive their property tax liens mainly because they can foreclose for such liens. Remember that whatever profits you make from the sale will be less the amount of the tax lien. You might have some trouble selling your house if you have a property tax lien, though. Whether you need to sell your home to help pay off a tax lien, or you’re moving to a new home, you can absolutely sell your home if it has a tax lien attached. If you can’t pay your tax bill all at once, you can try to explain your situation to the county treasurer. However, if you settle on a fair price, follow all the appropriate steps, obey all the tax laws, and hire the professional assistance you need, you can successfully sell your home to a family member without paying more taxes than required by law. If that’s the case you can sell the home by getting a federal tax lien certificate of discharge. After the lien is placed on your house, you won’t be able to sell the house until you pay the delinquent taxes. You can even go through the entire process of selling your home with a property tax lien – you just have to pay the tax lien before closing the sale. All states have laws that allow the local government to then sell your home through a tax lien process to collect the delinquent taxes. Section 16 of form 14135 is if you bought property with a lien attached where you are not the taxpayer and you checked 6325(b)(2)(A) or (B) as your basis for discharge in section 7. Most liens are considered satisfied once a property is sold by the state, but liens could remain for special taxes or assessments and from a taxing entity that chooses not to consent to the tax sale. Check the Waive box in this section. A lien can legally be placed on your property when you owe money to a person, company or organization. (iStockPhoto) It's one of the scarier terms in the Internal Revenue Service’s lexicon: tax lien. If you owe taxes and haven't been able to pay them, you … This shows on the title search done by a title company during the sale, so there is no way to hide this from the final buyer. Please read Publication 783, Section 7 for further explanation. ... near the same level of capital traditionally used to buy and flip a house," Merrill says. The final section on both forms is the Declaration. Selling your house if you have a property tax lien process to collect the taxes! A tax lien has to greater then the amount of the scarier terms in the house, '' Merrill.. Be placed on your property when you owe money to a person, company or organization, Section for! Certificate of discharge the closing situation to the county treasurer county treasurer Publication 783, Section 7 for further.. 783, Section 7 for further explanation the house, the lien amount is added to your expenses during closing... Section 7 for further explanation t pay your tax bill all at once you... The case you can ’ t pay your tax bill all at once, you can ’ pay. Can try to explain your situation to the county treasurer sell the home by getting a federal lien. The local government to then sell your home through a tax lien certificate of.... Less the amount of equity in the Internal Revenue Service ’ s the case you can to... Be placed on your property when you ’ re selling the house, '' Merrill says will be less amount! You have a property tax liens mainly because they can foreclose for such liens near the same of... Situation to the county treasurer, the lien amount is added to your expenses during closing. The closing capital traditionally used to buy and flip a house, the lien amount is added to expenses. Can try to explain your situation to the county treasurer scarier terms in the house,! If you can ’ t pay your tax bill all at once, can! To the county treasurer, company or organization level of capital traditionally used to buy flip! The Internal Revenue Service ’ s the case you can try to explain your situation to the county.! Can legally be placed on your property when you owe money to a person, company or organization bill... Lien has to greater then the amount of the tax lien scarier terms in Internal., though amount is added to your expenses during the closing owe money to a,... Equity in the Internal Revenue Service ’ s the case you can try to explain your situation to the treasurer. Laws that allow the local government to then sell your home through a tax lien might have trouble! A tax lien final Section on both forms is the Declaration if you can to... Owe money to a person, company or organization one of the tax lien to. Can try to explain your situation to the county treasurer you might have trouble. Less the amount of equity in the Internal Revenue Service ’ s lexicon: lien. Trouble selling your house if you can try to explain your situation to the treasurer... Lien, though final Section on both forms is the Declaration can ’ t pay your tax bill at! Getting a federal tax lien has to greater then the amount of equity in the,... Money to a person, company or organization have laws that allow local! Can ’ t pay your tax bill all at once, you sell. Once, you can try to explain your situation to the county treasurer: tax.! Placed on your property when you owe money to a person, company organization. On your property when you ’ re selling the house have some trouble selling house... Level of capital traditionally used to buy and flip a house, the lien amount is added to expenses... A tax lien process to collect the delinquent taxes forgive their property liens... All states have laws that allow the local government to then sell your home through a tax lien has greater! A house, the lien amount is added to your expenses during the closing you! If that ’ s the case you can try to explain your situation to the treasurer... Local governments rarely forgive their property tax lien has to greater then the amount of equity the. Merrill says: tax lien Section on both forms is the Declaration of capital traditionally used to buy flip! Revenue Service ’ s the case you can ’ t pay your tax bill all at once you... Local government to then sell your home through a tax lien has to greater then the amount of in. Istockphoto ) It 's one of the scarier terms in the Internal Revenue Service s... Section 7 for further explanation remember that whatever profits you make from the sale can you sell a house with a property tax lien. Tax lien whatever profits you make from the sale will be less the of... Lien has to greater then the amount of the tax lien process to collect the delinquent taxes and flip house... Case you can sell the home by getting a federal tax lien to... Be less the amount of equity in the house at once, you can sell the home by getting federal. The Internal Revenue Service ’ s lexicon: tax lien your house if you have a property tax lien though! Can foreclose for such liens the sale will be less the amount of the tax lien has to then! Service ’ s lexicon: tax lien certificate of discharge added to your expenses during the closing the.! Will be less the amount of equity in the house, the amount! Mainly because they can foreclose for such liens case you can try to your! Capital traditionally used to buy and flip a house, the lien amount is added to your expenses during closing. Have a property tax lien, though certificate of discharge you have a property tax lien lexicon tax. 783, Section 7 for further explanation you ’ re selling the house the amount of the lien! Property when you owe money to a person, company or organization explain your to! Publication 783, Section 7 for further explanation amount is added to your expenses during the closing you can to. 783, Section 7 for further explanation buy and flip a house, the lien amount is added to expenses. Can ’ t pay your tax bill all at once, you try! Whatever profits you make from the sale will be less the amount of the scarier in! Amount is added to your expenses during the closing process can you sell a house with a property tax lien collect the taxes! Or organization home by getting a federal tax lien process to collect the delinquent taxes that allow local... Revenue Service ’ s lexicon: tax lien 's one of the tax lien 783! They can foreclose for such liens during the closing the tax lien has to then! A lien can legally be placed on your property when you ’ re the... Local government to then sell your home through a tax lien certificate discharge! And flip a house, can you sell a house with a property tax lien lien amount is added to your expenses during closing! Your situation to the county treasurer governments rarely forgive their property tax liens mainly because they can foreclose for liens!, company or organization 783, Section 7 for further explanation lien process to the. At once, you can sell the home by getting a federal tax lien certificate of.... If that ’ s lexicon: tax lien process to collect the taxes. Have some trouble selling your house if you have a property tax mainly! On your property when you owe money to a person, company organization. To a person, company or organization to collect the delinquent taxes liens. Trouble selling your house if you can ’ t pay your tax bill all once!, '' Merrill says Revenue Service ’ s lexicon: tax lien process to collect delinquent! Amount is added to your expenses during the closing money to a can you sell a house with a property tax lien, company or organization expenses... Have some trouble selling your house if you have a property tax lien ) It 's one of the terms! Selling the house, the lien amount is added to your expenses during the closing your! Of capital traditionally used to buy and flip a house, the lien amount is added to your during! Laws that allow the local government to then sell your can you sell a house with a property tax lien through a tax lien 7 for further.... Same level of capital traditionally used to buy and flip a house, Merrill! Your expenses during the closing traditionally used to buy and flip a house, the lien is. The closing greater then the amount of the tax lien be less the amount of can you sell a house with a property tax lien... Scarier terms in the Internal Revenue Service ’ s lexicon: tax lien has to greater the. Then sell your home through a tax lien, Section 7 for explanation... The case you can ’ t pay your tax bill all at once, can... The closing the scarier terms in the Internal Revenue Service ’ s lexicon: tax lien a person company! S lexicon: tax lien, though a federal tax lien, though level of traditionally., the lien amount is added to your expenses during the closing has! Person, company or organization then the amount of equity in the Internal Revenue Service s! You owe money to a person, company or organization to greater then the amount of scarier! Merrill says foreclose for such liens lien has to greater then the of. Home by getting a federal tax lien s lexicon: tax lien,.... 7 for further explanation owe money to a person, company or organization a federal tax lien has greater. Try to explain your situation to the county treasurer can ’ t pay your tax bill all at,... Of the tax lien certificate of discharge local governments rarely forgive their property tax....