TAX 9900 Lecture Notes - Lecture 7: Title Search
Document Summary
Gives notice to world that it has interest in ppty. Two liens against ppty: bank 1st, irs 2nd. If sale yields ,000, bank gets k, irs nothing. If opposite, suppose day 02, irs filed nftl, and on day 05, bank filed its lien. Irs gets k first, bank whatever left over. Concept whoever files lien first, gives notice to world of lien. When ppty foreclosed upon/sold, the creditor who filed lien first, gets paid in full; if anything left over, creditor who filed second gets paid, and so forth. A filed lien beats out any subsequent transferees & creditors. Irs/any creditor files lien that attaches to ppty. If ppty transferred, creditor can go after ppty to satisfy debt. Irs files an nftl (,000) against that attaches to all mr. c"s property. Mr. c sells his summer house to z for ,000. Irs forecloses on the summer house and gets ,000. A few months later, irs forecloses against summer house.
