Yes. Back taxes and liens are paid from your sale proceeds at closing, as long as the price covers what is owed. A title search helps identify recorded liens, and what is left after payoffs is yours.
Yes, you can sell a house with back taxes or liens. They are paid from your sale proceeds at closing, as long as the sale price covers what is owed.
How closing works
The title company runs a search to find every lien: back taxes, mortgage, HOA, code enforcement, judgments, and others.
They request payoffs from each lienholder.
At closing, the payoffs are paid out of the sale price in the order required by law.
What is left is yours.
If the price does not cover everything
You will need lienholder approval for a short sale, extra cash at closing, or negotiated reductions. Some liens can be negotiated. Property taxes are not negotiable.
Liens that come up most
Delinquent property taxes
Mortgage and home equity loans
HOA assessments
Code enforcement fines, which can sometimes be reduced
Judgments and contractor liens
IRS or state tax liens
Mistakes to avoid
Not running a lien search early.
Listing without knowing the total payoff.
Ignoring a sale date.
What to do this week
Order a title search or ask a title company for a payoff estimate. Then send me the address and I will show you what you would net.
Disclosure: I am a licensed REALTOR with eXp Realty, and I also invest in homes through my own company. If I am ever the buyer, I will tell you in writing before you decide.
General education, not legal, tax or investment advice. Discuss your circumstances with a licensed Florida attorney or tax professional. Yoganand Ganeshram PA, licensed Florida real estate agent with eXp Realty. Equal Housing Opportunity.
Originally published on Equity Edge Orlando. Reviewed for this Substack edition.