Home Buying in Valrico>Question Details

ajayihome, Home Buyer in Valrico, FL

We are buying a forclosed property from the bank. The prior owner had an IRS lien on the property. Can we be sure that the bank had cleared the lien?

Asked by ajayihome, Valrico, FL Wed Aug 29, 2012

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I am sure yo are getting Title Insurance. Aren't you? Read your Title Policy and make sure there are no exclusions. As a rule, the bank gives you clear title with all known liens taken care of. The itle Company will do a thorough search of all liens before issuing a Title Policy. If you know of a lien, talk to the Title company to clarify that it will be paid off.
Good Luck!
1 vote Thank Flag Link Thu Aug 30, 2012
Good Morning,
As part of your purchase loan(and something you pay for), you are required to get title insurance.
Basically, you are paying a title insurance company to research the title to your home and insure against defects. However,title companies are great at their "exclusions". To be sure, you should also make an appointment at your local IRS office and find out. That might not be the most fun in the world, but if you have concerns, it should help clarify them.

I hope this helps.

Pat Palmer-Broker Associate
Boca's Best Broker


Keller Williams
2424 N. Federal Hwy #318
Boca Raton, FL 33431
0 votes Thank Flag Link Thu Aug 30, 2012
Also fyi an IRS lien will evaporate after a few months after foreclosure if the IRS does not take action to claim the property. Check with the title company to verify if there will be a delay in closing to allow this lien to go away.

Also if you are getting a mortgage your lender week review the title insurance binder. They will not allow you to buy with an IRS lien.

If you are paying cash, make sure to hire an attorney to review your title insurance. It's not too expensive and I can highly recommend attorney Lawrence Fuentes http://www.FKLaw.com

All the best,
Alma Rose Kee, PA
Future Home Realty
0 votes Thank Flag Link Thu Aug 30, 2012
In Florida, typically the title agency hired by the bank to do the title work on the home is an attorneys office, but most importantly, they are issuing a title insurance policy, protecting you from any claims against the home, after you have purchased. In order to issue this policy, the title agency has researched any claims or liens that may exist against the home. You can contact me directly if you have any questions, or, if you are working with an agent to represent you in the transaction, they should be able to put you at ease.
PS-as Larry pointed out, if you are concerned, consult with a local real estate attorney.
0 votes Thank Flag Link Thu Aug 30, 2012
Your closing attorney should ensure this. You will be receiving a limited or special warranty deed from the bank when you close and in addition you should be purchasing Title Insurance. These are additional insurances that the property you're buying is free and clear of any claims against it.

Typically when a lender forecloses all lien holders are notified and arrangements made at that time.

If you have additional concerns you should really contact a real estate attorney to have your questions answered.
0 votes Thank Flag Link Thu Aug 30, 2012
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