Tax liens preventing sale closing?

Asked by Jjjccc, Hamilton, MA Sun May 23, 2010

i signed P&S on home; later my attorney discovered liens against home totaling $100,000 more than all proceeds left over from sale of home, net of mortgage. So home was never really saleable at agreed price. Any recourse for my attorney costs?

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Heidi Zizza, Agent, Framingham, MA
Tue May 25, 2010
Send the Attorney a Thank you Note!!
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Matt Heisler, Agent, Westborough, MA
Mon May 24, 2010
Your attorney costs - probably in the neighborhood a a few hundred dollars - are technically recoverable. But it's not practical; there are no seller deposits and a lawsuit would be more expensive than your current outlay. Be happy the liens were discovered, so that you didn't end up responsible for them!

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Scott Godzyk, Agent, Manchester, NH
Mon May 24, 2010
Most purchase and sales do have a paragraph that deals with if the seller can not produce clear title. In most cases that is why you have an attorney to complete your due diligince. I know not the answer you want to hear, but it is the buyers cost to search the deed unless you ro yoru agent had done this prior to making an offer to avoid later costs.

The paragraph usually states that the seller has a certain amount of time to correct the problem and produce clear title or you can be released without recourse.

Depending what type of tax liens, your attorney can attempt to negotiate with sellers attorney to get liens released and allow teh sale if teh seller is not getting any profit

good luck working things out
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Joe Arnao, Agent, Sanwich, MA
Mon May 24, 2010
It is great you have an attorney. That is your best resource. You P&S may have lanquage regarding liens and encumberances that will allow you to get out of the deal and recoup your deposit.
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Kevin Vitali, Agent, Tewksbury, MA
Mon May 24, 2010
Unfortunately the tax liens have to be paid before the house can be sold.

I am not a lawyer and I would certainly talk to one. Specifically, the seller was under contract to sell the home to you. They can be sued for non-performance where you can recoup any lost costs. The problem is two fold. One it is probably more money than can be done in small claims court and two it is hard to get money from someone who doesn't have any. The questions to ask is how much money do you need to spend to try and get some money from the seller and what is the likeliness you will actually get it.

Again, I am not at attorney and you should definitely speak to one.
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