Home Buying in 75238>Question Details

suzannelouis…, Home Buyer in Metairie, LA

Can I get inspection and appraisal fees back if house cannot be sold due to an IRS lien?

Asked by suzannelouisewalton, Metairie, LA Wed Oct 9, 2013

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No probably not because even if the property can't be sold these services have still been performed. I would contact a real estate attorney though for more clarification.
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0 votes Thank Flag Link Mon Oct 14, 2013
Talk with the title company or a real estate attorney.
0 votes Thank Flag Link Thu Oct 10, 2013
Hi Suzanne

If your question is strictly about the costs you've incurred so far, then my answer would be no

Regardless of the lien, the inspector and appraiser performed a service and they were paid for it. This is the same as if the inspection uncovered something that caused you to back out of the deal or if the home failed to appraise for the purchase price. That doesn't change the fact that they did their job. And it's irrelevant whether the purchase closes or not.

As far as trying to get the sellers to re-imburse you, you can ask but I certainly wouldn't expect to get anywhere with it. First of all, the appraisal and inspection are for your benefit only and the seller didn't require you to get these, they gave you the option to at your expense (although your lender would have required it. Besides, if they can't pay their taxes I'm sure you won't have any luck collecting.

As the others said, you should wait and see how it plays out and pursue ways to make the closing happen. If it all falls apart at the end, then you may be able to pursue them for damages if you can prove they made a blatantly false representation to you. But tax liens are not generally referenced in writing anywhere in the purchase agreement and are likely not discovered until the title search is conducted, so I'm not sure how much of a basis for a lawsuit you would have. That would be a question for a lawyer.

People spend money on inspections and appraisals all the time where the deal does not close for whatever reason. It's a cost of doing business and you may just have to chalk it up as a loss.

I wish you good luck though!
0 votes Thank Flag Link Thu Oct 10, 2013

You may ask, if you have not already done so.

You may have a basis for a small claims action although collecting if you win is another problem.

The IRS, as Wendy has pointed out, may allow the deed to convey upon receipt of the equity even if it does not fully pay off the lien.

You may be able to force the seller to go through with the transaction but that would require the advice and assistance and payment for an attorney.
0 votes Thank Flag Link Wed Oct 9, 2013
John i get that...but the contract expires on.10/31 so once it expires is therr anything i can do to get my appraisal/inspection money back from the seller since she should not have accepted my offer?
0 votes Thank Flag Link Wed Oct 9, 2013
I have gotten an IRS tax lien off a short sale before, I even went down to the IRS office that handles liens on properties before to find out how to do it. The IRS just wants the equity that's all, there are not interested in anything else.
0 votes Thank Flag Link Wed Oct 9, 2013
I doubt if the lien holder will remove the lien just because there is not enough to pay the lien. I don’t see why the IRS would allow the seller to walk away with any cash just because there is not enough to pay the lien and put cash in the seller’s pocket. The seller should have been aware of the problem.

The seller cannot sell to you but cannot sell to anyone else, either. Perhaps the seller can come up with cash to make up the shortage and finalize the sale. The seller is stuck with the house at this point.
0 votes Thank Flag Link Wed Oct 9, 2013
Title company is accustom of knowing exactly what to do resolve the issues AND potential of closing on your contracted date.

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0 votes Thank Flag Link Wed Oct 9, 2013
IRS only puts liens on property for getting equity at sale, I would go to the title company and have them contact IRS to remove the Lien if there is not any equity. It takes about 30 days to cure a IRS lien off a property
0 votes Thank Flag Link Wed Oct 9, 2013
I put an offer on a house. Seller agreed to offer..i got inspections and appraisal done. In trying to get a clear title it was discovered that seller would not get enough from sale of the house to pay off lrs lien...i am asking if i have a right to ask seller for the money i put out (inspections, appraisal) since she cannot sell the house
0 votes Thank Flag Link Wed Oct 9, 2013
who do you think should give you the fees back? The people who performed the services or the seller?
0 votes Thank Flag Link Wed Oct 9, 2013
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