How to Avoid a Property Tax Lien

Posted by CourthouseDirect.com Team - 08 January, 2015

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If you aren't unfamiliar with the term “property tax lien,” that’s a good thing. The only reason you would know it is if you don’t pay your taxes. Failure to pay taxes results in property liens placed on your property, including your house, land, car, bank account and sometimes your business or company. After a property tax lien is placed on any of the aforementioned properties, you are limited in actions related to your property until the debt is paid off.

If you don’t satisfy the debt, the government may sell off your property in order to leverage the debt owed.

Here are some ways to avoid this from happening:

  1. Pay your taxes. The alternative is unsettling, as not paying taxes affects your credit rating and your debt becomes public record. In addition, if you receive a property tax lien, you’ll end up paying fines and more in interest in order to have it released.

  2. What’s yours is the government’s. If you have a lien placed on a property, that lien becomes attached to a property you purchase after the lien was placed. This means that if your wife or husband has property has tax liens, a lien would be placed on a piece of property you buy as husband and wife.

  3. When in doubt, LLC it. Incorporating your business helps you avoid a property tax lien being placed on your personal property because your assets under your business will be separate from your personal property.

  4. Do your homework. Run a title search before you purchase any real estate. Liens transfer from seller to buyer, so if you purchase a property with a lien attached, you will become responsible for the associated debt.

  5. Ask the authorities. If it’s unclear whether or not a lien is placed on a property, ask a tax authority, as they will be able to prevent a property from being sold before associated taxes are paid.

You can search for Adverse Liens on properties using CourthouseDirect.com. We are committed to providing fast, accurate and affordable courthouse documents and research by using the Internet to cut costs and save time. We obtain public records and thereby eliminating inefficiencies and revolutionizing the delivery of courthouse information nationwide. To speak with an expert, call us today at 713.683.0314. 

Topics: Real Estate


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