Escrow & Title
A Vermont title search reveals a federal tax lien against the property's owner. At closing, this lien will typically be:
AIgnored if the amount is less than $10,000
BPaid and satisfied from the seller's proceeds before title passes to the buyer✓ Correct
CAssumed by the buyer as part of the transaction
DDischarged automatically upon the recording of the new deed
Explanation
Existing liens, including federal tax liens, must generally be paid and satisfied at closing before the seller can convey clear title to the buyer. The lien will be paid from the seller's proceeds and a release or satisfaction will be recorded.
Related Vermont Escrow & Title Questions
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