Whether buying a tax deed wipes out all liens and encumbrances on a property.
Whether buying a tax deed wipes out all liens and encumbrances on a property.
Yes, your understanding is correct:
Most private liens such as mortgages, judgment liens, and mechanic's liens are typically extinguished by a county tax deed sale.
However, governmental liens, including those imposed by the county, municipal government, or special taxing districts, usually survive a tax deed sale.
Important nuances:
Liens held directly by the county or city, such as code enforcement liens, municipal assessments, or special district charges, generally remain attached to the property after the sale.
Federal liens, such as IRS tax liens, have special redemption periods and rules, and in certain situations, can survive if the IRS isn't properly notified or the lien isn't properly discharged.
Always obtain a preliminary [title searc](https://propertyonion.com/titlecheck/why-our-search)h or lien search report before purchasing at a tax deed sale to ensure you fully understand any liens or assessments that will remain your responsibility post-sale.
Yes, your understanding is correct:
Most private liens such as mortgages, judgment liens, and mechanic's liens are typically extinguished by a county tax deed sale.
However, governmental liens, including those imposed by the county, municipal government, or special taxing districts, usually survive a tax deed sale.
Important nuances:
Liens held directly by the county or city, such as code enforcement liens, municipal assessments, or special district charges—generally remain attached to the property after the sale.
Federal liens, such as IRS tax liens, have special redemption periods and rules, and in certain situations, can survive if the IRS isn't properly notified or the lien isn't properly discharged.
Always obtain a preliminary [title searc](https://propertyonion.com/titlecheck/why-our-search)h or lien search report before purchasing at a tax deed sale to ensure you fully understand any liens or assessments that will remain your responsibility post-sale.
Whether buying a tax deed wipes out all liens and encumbrances on a property.
Yes, your understanding is correct:
Most private liens such as mortgages, judgment liens, and mechanic's liens are typically extinguished by a county tax deed sale.
However, governmental liens, including those imposed by the county, municipal government, or special taxing districts, usually survive a tax deed sale.
Important nuances:
Liens held directly by the county or city, such as code enforcement liens, municipal assessments, or special district charges—generally remain attached to the property after the sale.
Federal liens, such as IRS tax liens, have special redemption periods and rules, and in certain situations, can survive if the IRS isn't properly notified or the lien isn't properly discharged.
Always obtain a preliminary [title searc](https://propertyonion.com/titlecheck/why-our-search)h or lien search report before purchasing at a tax deed sale to ensure you fully understand any liens or assessments that will remain your responsibility post-sale.