Escrow & Title
A Colorado title search reveals an unpaid IRS federal tax lien against the seller. This lien:
ADoes not affect real property
BMust be satisfied before or at closing as it attaches to all the seller's real property✓ Correct
COnly affects the seller's personal property
DIs automatically discharged when the property is sold
Explanation
Federal IRS tax liens attach to all property owned by the taxpayer, including real estate. A federal tax lien must typically be paid off or released before a title company will insure clear title to the buyer.
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