Hi Avani,

When it comes to private liens, I wouldn’t say most, I’d say all of them are extinguished by a county tax deed sale. Tax liens take priority over any lien created through private agreements, including mortgages, judgments, and mechanics' liens. This principle is rooted in the idea that public obligations, like taxes, override private contracts under common law.

That said, always run a thorough title search before bidding. Even though those private liens shouldn’t survive, some lienholders might still try to collect from you. It happens, I’ve dealt with this more than once. That’s why having a good real estate attorney on your side is key. As soon as they respond to these illegitimate claims, most lienholders back off, knowing they’d lose in court and could end up being responsible for your legal costs.

One thing to be careful about is utility bills. Some utility providers are private companies (like FPL), while others are municipal. If a municipal utility lien was recorded before the tax lien, it may survive the sale due to seniority. It’s rare, but it can happen, so it's another thing to check when researching the property.

Regarding governmental liens, yes, state and federal liens, including IRS liens, have priority over even municipal claims. But here’s the key point: if the IRS chooses to exercise its redemption right (which they rarely do due to budget limitations), they are required by law to reimburse you, the winning bidder, for the full amount you paid at the auction. So while IRS liens may look intimidating on paper, the actual risk to you as a bidder is very low.

Hope that clears it up and best of luck!