A tax lien on a property doesn't stop a sale — it just changes what gets paid first at closing. Whether the lien is from unpaid property taxes, an IRS federal tax lien, or a state tax debt, the settlement attorney orders a payoff figure and it comes out of the proceeds before anything reaches the seller. What's left is yours.
In DC and Maryland especially, unpaid property taxes can also lead to a tax sale — where a third-party bidder buys the tax certificate and starts a clock on foreclosure. If a tax sale has already happened, there's usually still a redemption window, but it's shorter than people expect. That's where speed matters.
We've closed on homes with property-tax liens, IRS liens, municipal water-and-sewer liens, and HOA judgments. The title company handles the payoffs; we handle the property.
What we handle here specifically
How we work on tax lien or back taxes sales.
- Order lien payoffs through the title company as part of standard closing — no separate legal drama.
- Move quickly if a tax sale has already been held and there's a redemption clock ticking.
- Coordinate with a tax attorney if the IRS lien is contested or an offer-in-compromise is in progress.
- Buy even when the payoff would zero out your equity — we close, you walk away without the debt following you.
- Handle municipal utility and HOA liens along with the tax debt at settlement.