IRS lien and Unrecorded CFD - Posted by Troy M

Posted by Soraya(SanDiego) on June 02, 2000 at 24:51:09:

I would talk to an Attorney about this.

No deal is worth being “indicted” for conspiracy to defraud the IRS.


IRS lien and Unrecorded CFD - Posted by Troy M

Posted by Troy M on June 01, 2000 at 23:54:41:

I’ve got a home under contract to purchase from a guy who ‘purchased’ his home about 8 years ago on a Contract For Deed. While doing a title search, the title company discovered some $28,000 in IRS liens. The CFD however, was never recorded. So, the seller has suggested that I write a new contract to purchase the home from the gent that holds the deed (the seller in the CFD agreement) and those two will split up the cash appropriately between themselves. Those two are on friendly terms and in agreement. The title company says they can’t do that since they are aware of the whole situation, but another title company may, since the buyer on the CFD won’t be in the deal. (I will still get a Quit Claim from the Buyer on the CFD).

If you’re still with me here, tell me why I shouldn’t do this. After all, isn’t that one of the main reasons for not recording a CFD, so the Buyer’s liens, judgements etc. won’t attach to the property? I believe, however, that IF anything ever came of this, my title insurance would be voided since I have knowledge of the IRS lien. I just can’t see how anything will come of it. Tell me I’m wrong.

Thanks for any input,

Troy M

Re: IRS lien and Unrecorded CFD - Posted by ScottE

Posted by ScottE on June 02, 2000 at 09:14:39:

Is it possible on the CFD that these two guys signed there is a clause voiding the contract if the buyer has an IRS or other judgment that might jeopardize the property?
If so, the (original) seller could void his contract with your guy and sell directly to you. Either way, you are probably best served to seek competent legal advice.

Good luck and keep us posted