As you can imagine getting the certificate of discharge is easier said then done, especially when things move at the “speed of government.” After the lien is placed on your house, you won’t be able to sell the house until you pay the delinquent taxes. Where can you find a property tax lien? If you are planning on selling your home, and you have a lien on your property, you may be required to take certain steps in order to complete the sale of your house. Please read Publication 783, Section 7 for further explanation. All states have laws that allow the local government to then sell your home through a tax lien process to collect the delinquent taxes. If you fail to keep current on your property taxes or other municipal charges, like a sewer or water bill, the past-due amount becomes a lien on your home. The final section on both forms is the Declaration. Most liens are considered satisfied once a property is sold by the state, but liens could remain for special taxes or assessments and from a taxing entity that chooses not to consent to the tax sale. ... near the same level of capital traditionally used to buy and flip a house," Merrill says. A property tax lien can result in the government taking your house and selling it. Whether you need to sell your home to help pay off a tax lien, or you’re moving to a new home, you can absolutely sell your home if it has a tax lien attached. The federal tax lien has to greater then the amount of equity in the house. However, if you settle on a fair price, follow all the appropriate steps, obey all the tax laws, and hire the professional assistance you need, you can successfully sell your home to a family member without paying more taxes than required by law. As a lien on the property, the taxing authorities can sell off the rights to collect on the amount owed and the tax buyer can, after a certain amount of time, become the owner of the property. If that’s the case you can sell the home by getting a federal tax lien certificate of discharge. A lien can legally be placed on your property when you owe money to a person, company or organization. This shows on the title search done by a title company during the sale, so there is no way to hide this from the final buyer. Local governments rarely forgive their property tax liens mainly because they can foreclose for such liens. You can even go through the entire process of selling your home with a property tax lien – you just have to pay the tax lien before closing the sale. When you’re selling the house, the lien amount is added to your expenses during the closing. Remember that whatever profits you make from the sale will be less the amount of the tax lien. 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