Let the Buyer Beware… Anything to Salvage? - Posted by Steve Heller
Posted by Steve Heller on May 26, 1999 at 20:04:20:
I entered a purchase agreement to purchase a lot in a nice neighborhood around April 14th. The owners agreed to sell for $4,100, I put $500 down. I required that they bring the abstract up to date so I could have it review by my attorney. They wanted to do a ‘Quit Claim Deed’ right on the spot. About 7 weeks later the abstract was built (from the ground up) at a cost of around $600. One of the owners called me and said the abstract was complete and asked if I was ready to sign the ‘Quit Claim Deed’. I said not until I had my attorney look at it. She brought the abstract to my office and I took it to the attorney. Later the attorney called and said page #209 was missing. He and I agreed that we had to know what was on the missing page. He called the abstract company and they said that page contained a federal IRS tax lien for $12,000, which I would have assumed had I signed the ‘Quit Claim Deed’ the owners previously suggested.
I realize this post is a little long but I wanted to share the experience with you in case you are ever tempted to cut corners. The attorney suggested that the owners go to the IRS office (which they agreed to do) and see if the IRS would apply the purchase price of the lot to back taxes owed in exchange for the IRS releasing their lien. I’ll let you know what happens. If any creative minds have a solution, please let me know.