We have property that has substantial IRS lien, can we use q

Hi iac ,

Welcome to this forum.

You should use a Warranty deed instead of quitclaim deed for selling the property. And also you have to pay the due tax to the IRS before you sell the property.

Thanks,
Larry

Hi Iac,

Welcome to our community forums.

First of all, no deed can help in selling property. It is just the title transfer at the time of sale that requires the deed be it a quitclaim or warranty deed. However, the second one is widely used for change in title when it comes to property sale.

The next thing is, if you are having a lien on your home placed by the IRS, then it's not possible to sell the home. Either you clear the lien by paying the back taxes or else the IRS will sell off your home in a tax lien sale and then you'll lose it.

Regards,

Jessica.

Welcome to the forum Iac,

Jessica is correct in that the transferring the deed does not actually "sell" the property. It is only used to transfer the title to the property upon the sale.

When you sell, the proceeds will first be used to pay-off any tax liens and then the remainder (after any additional closing fees) will be paid to you. The lien must be released from the property. You can not transfer title until that has been accomplished.

You can sell the property using a quitclaim deed, but the new owner will take the property subject to the lien. A grant deed should be used instead of a quitclaim deed.

If you go through an escrow to an independent 3rd party buyer, the IRS will be paid out of the escrow and subtracted from your proceeds, and you will probably give a warranty deed.