Escrow & Title
A Maryland property has an IRS tax lien recorded against the seller. This lien must be:
ATransferred to the buyer as part of the purchase
BPaid and released before or at settlement to convey clear title✓ Correct
CAssumed by the title company
DDisclosed in the listing but need not be paid
Explanation
Federal tax liens against the seller are recorded encumbrances that must be paid off at or before settlement to ensure the buyer receives clear title.
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