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NitpickLawyertoday at 5:18 PM4 repliesview on HN

> With $120,000 owed in back taxes due by you upon purchase.

How does it work in the US? Are taxes on the property itself? This feels weird. I would have thought that the property can only be sold if everything is OK with it (no litigation, liens, etc), and taxes are owed by persons? Is it different over there?


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1-moretoday at 5:35 PM

> the property can only be sold if everything is OK with it (no litigation, liens, etc), and taxes are owed by persons? Is it different over there?

This could vary by jurisdiction, but as I understand it, taxes and liens are attached to the property itself. "Clean title" can be a contingency of offer: buyer can back out and get back their earnest money (aka deposit) if the property has liens/encumbrances that are not written down in the sales contract (example clause at the link at the end). When you buy the place, you get title insurance, often mandated by your mortgage lender. The title insurance company does a title search on the property to find liens and owed money on the property and then sells you an insurance policy saying that they'll make it right if they missed anything during their search. This is because your mortgage lender never wants to be second in line to get their hands on the property to recoup in case you default on your mortgage. Liens on the property should be easy to find because they're supposed to be registered with the local municipality: maybe the city you're in, maybe the county, maybe the state, idk I think it depends. In practice, maybe some roofer/plumber/landscaper forgot to do that and now you have a problem you didn't know you had. That's what the insurance is for. The property _status_ is not knowable so much as the _status transitions_ are knowable: when was a lien attached or removed from the property, so that's why it involves a private company looking it up. You'd think it'd be a public good, but it's not. Odd.

As an example: when I bought my current place, the previous owner was financing the furnace which included free annual service from the installer. He wanted us to take over the payments. We asked him to convey without encumbrances, meaning pay off the balance with the furnace company before we'd close on the house. If he had refused, we could have backed out of the sale because our offer said that we were only willing to buy without owing anyone anything.

https://www.lawinsider.com/clause/title-contingency

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Scubabear68today at 6:52 PM

Very commonly in the U.S. are liabilities that "run with the land", not the owner. This is done intentionally.

Easements can be a huge headache too e.g. some utility may have an easement to come on your property at any time and do a whole list of activities to maintain a pipeline, or power line, or what have you.

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dcrazytoday at 5:20 PM

It’s called a tax sale. The delinquent tax was assessed on the value of the ”improved property”.