Sell a House With Liens or Back Taxes in Winnipeg

Selling your home is really a very big task. If you have a lien or back taxes on your property, then it can become more stressful while selling. Many homeowners have one question: Can I sell a house with liens or back taxes in Winnipeg? Here’s the truth. This blog post will suggest some points you will remember while selling your home with liens or back taxes.

Liens and Back Taxes: What Are They?

Before you attempt to sell your home, you should know:

Lien: A lien is when someone you owe money to makes a legal claim on your property. For example, if you do not pay the bank, contractor, or government, they can put a lien on your home.

Back taxes: These are unpaid property taxes owed to the City of Winnipeg. If you try to avoid property taxes for multiple years, the city can take action to sell your home in a tax sale.

You do not have “clear” property ownership if you have a lien or back taxes. In practical terms, you cannot easily transfer your home to someone else until the debts have been addressed.

Can I Sell A House With Liens or Back Taxes in Winnipeg? Here’s the truth:

Yes, it is possible to sell your home with liens or back taxes owed; however, it may take more time and work for you. Most buyers want to purchase a home with a clean title, meaning no liens or debts on the title. So before the sale can be completed, you must clear or satisfy the debts.
Here is the good news: in most cases, the proceeds from the sale of your home can be used to clear your liens or back taxes at closing. Your lawyer can do all this for you.

Common Types of Liens You May Encounter

There are a few different types of liens that can exist on homes in Winnipeg:

• Mortgage lien: If you have not fully repaid your mortgage, the bank will have a lien until you have fully satisfied the mortgage.
  Builder’s or contractor lien: If a contractor performed work at your home and was unpaid, they may file a lien.
• Judgment lien: If someone sues you and obtains a favorable ruling, their judgment may be attached to your property.
• Tax lien: The City of Winnipeg can issue a lien against the property if you owe property taxes.

All of these must be discharged before the buyer can obtain property ownership.

What Happens When You Attempt Selling?

When you sell your home, the buyer’s attorney will conduct a title search, showing whether there are any liens or debts relating to your home.
If any liens or tax debts are discovered, there’s no need to panic; there is a resolution:

1. Pay off the debts before closing: You can use the sale proceeds to pay off all your liens. Your attorney will ensure that the correct amount is paid to each creditor.
2. Negotiate the payoff: Creditors sometimes agree to a lower amount to remove a lien.
3. Settle with the City of Winnipeg: If you owe property taxes, you can talk to the City of Winnipeg and make arrangements to pay the taxes before selling the property.

Once the debts are cleared and settled, you’ll have a “clean” title and can sell your property without worry.

Step-by-Step: How to Sell a House With Liens or Back Taxes

To make this process easy:

Step 1: Title Check

Complete a title search with your lawyer or through the Land Titles Office. This will show you any liens or unpaid taxes.

Step 2: Create a Debt List

Make a list of every lien or debt you have. You will be better prepared if you know what you owe in advance.

Step 3: Consult a Real Estate Lawyer

Your local real estate lawyer can help answer your questions about the proper process for selling your home in Winnipeg.

Step 4: Contact Creditors or City

If you owe money when you sell the property, you should contact the people or organizations that put the lien against your property. Most will be flexible in working on a payback plan, or will accept their payment after the sale.

Step 5: List and Sell the Property

Once you know what you owe in debts or liens, you can list the property at a retail price. Just be clear with any potential buyers about the situation. Honesty and trust go a long way.

Step 6: Finalize the Sale

At closing, your lawyer will use some of thebuyer’ss money to pay these amounts to pay off your debt, and remove the lien from the title. Then you will receive your remaining money (your equity).

What Happens If You Don’t Clear the Liens?

Failing to pay your liens or back taxes can make the sale fall apart. The buyer’s lawyer will resist progressing with the deal until the title is clear.
Furthermore, if you ignore your back taxes for a significant time, the City of Winnipeg can eventually take your property through a tax sale. That is why it is better to deal with them early and not let it go that far.

Conclusion

So, can you sell a house in Winnipeg with liens or back taxes? Yes, you can! But first, you’ll need to pay off your debts, settle your debts, or use the proceeds from your sale to pay off your debts. It might sound overwhelming, but it will be a smooth process with the right assistance.
If you find yourself in this situation, don’t worry. Connect with a trusted Winnipeg real estate lawyer or home buyer to assist you through the process so you can sell your home quickly — without regrets.

FAQs regarding Can I Sell a House With Liens or Back Taxes in Winnipeg? 

Question 1. Do buyers purchase homes with liens?

Answer: Buyers usually want to buy a home that does not have a lien. However, there are often investors or cash buyers willing to buy the home as long as the liens can be cleared at closing.

Question 2. What happens if I don’t pay back taxes in Winnipeg?
Answer: The city can initiate a tax sale process and eventually take ownership of the property if the taxes have gone unpaid for too long.

Question 3. Can I sell my home to a cash buyer with liens?
Answer: Absolutely! Many cash buyers, such as local home-buying companies, are experienced in buying homes with different types of liens or with tax problems, and they take care of all the paperwork and documents for you.