Legal Question in Real Estate Law in Michigan

IRS Lien

I recently closed on a property with clean title and purchased title insurance. The IRS have now contacted me and say they have a lien on the house and are threatening to seize the property. The previous owner owed a six figure unpaid tax liability. Can the IRS seize the house when I bought under the impression that it had clear title? Is it the title companies responsibility to discharge this lien and should they have done so before I closed? This is a very worrying situation and the IRS are threatening to star proeedings in 2 weeks.

Please help. Thanks


Asked on 5/04/07, 12:31 pm

1 Answer from Attorneys
Christopher Sevick Law Office of Christopher Sevick, PLC

Re: IRS Lien

Just from what you have written, one of three things may have happened, but either way you should contact a good real estate attorney to assist you in resolving this.

Either the lien was just recorded and was not on the parcel when you purchased or it was recorded but "missed" by the title company. The other option is that the lien recorded after the title company searched all records available to date, but before you closed. If that is the case you need to have an attorney see about the "gap" coverage available under the title policy.

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Answered on 5/04/07, 12:59 pm


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