Legal Question in Real Estate Law in District of Columbia

Q-deed

Q.1 With A florida quick deed who is liable for payment of

the deeded property?

Q.2 Myself and Another person are buying A plot of land .

Come to find out this person is in debt to the I.R.S.,

Am I and my investment at risk?


Asked on 4/15/04, 1:05 am

2 Answers from Attorneys

Michael Hendrickson Law Office Michael E. Hendrickson

Re: Q-deed

Your question appears somewhat confusing, but if

you're asking whether your proposed purchase of Florida property via a quitclaim deed conveyance

in a situation where the seller owes a debt to the IRS, will place you or your purchase in financial jeopardy, the answer is no, because the sale of the property cannot be completed (legally) without some of the proceeds from the sale being used to first payoff the IRS thereby releasing the lien which Uncle Sam's Collector has undoubtedly already recorded against your intended purchase.

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Answered on 4/15/04, 9:53 am
Tiziana Ventimiglia Tiziana Ventimiglia, Attorney at Law

Re: Q-deed

Question No.1 is very confusing. Question No.2 is instead simple: you must mean the following... a title search by the abstractor from the settlement agent must have uncovered a judgment against the current owner, or a prior owner of the property from the IRS. This is not uncommon. The first thing to do is to make sure that it is the same person... quite often it is simply a case of similar names in which case a simple name affidavit will do the trick. However, if it is the right defendant and it is the current owner of the property, then the IRS judgment needs to be paid and released out of the proceeds of the sale. note that however, because you are only purchasing land the proceeds may not be enough... a negotiated amount is a possibility. all of the negotiation must be done by the current owner. if for whatever reason the judgment is not paid it would be a lien on the land that you buy and the current owner (i.e. you) would be responsible for paying it. it is ALWAYS a good idea to purchase OWNER'S title insurance EVEN ON LAND.

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Answered on 4/19/04, 6:57 am


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