Title & Liens
What Is Tax Lien?
A tax lien is a claim placed on a property by a government for unpaid property or income taxes. Property tax liens take priority over most other claims and must be resolved before a home can be sold with clear title.
When property taxes go unpaid, the local government places a tax lien on the home. These liens carry high priority — generally ahead of mortgages and most other claims — which is why they must be addressed in any sale.
Unpaid property taxes can eventually lead to a tax sale or tax deed process, where the government sells the property or a tax certificate to recover what's owed. The timelines vary by state and county.
A cash sale clears tax liens at closing: the amount owed is paid from the sale proceeds, and you keep the remainder. You don't need to pay off back taxes before selling.
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