The short version: unpaid property taxes and liens registered against a title are debts of the estate, and they get resolved as part of a normal closing process — paid out from the sale proceeds, with the lawyer or notary handling the file making sure everything is cleared before title transfers to the buyer. They're a logistics item to manage, not typically a reason a sale can't happen.
Why this comes up more often than people expect
When someone passes away or becomes incapacitated, bill payments can fall behind — property taxes included — especially if they were living alone and handling their own finances up to that point. It's a very normal discovery during the early stages of settling an estate, not a sign anything was done wrong.
How unpaid property taxes get handled
Municipal property tax arrears attach to the property itself, not just to the person. In practice:
- The executor or Committee typically pays current and overdue taxes from available estate funds once they're managing the estate's finances, to avoid the arrears growing or triggering further municipal action
- If there isn't ready cash available before the home sells, outstanding taxes are commonly paid out of the sale proceeds at closing, similar to how a mortgage is settled
- Significantly overdue municipal taxes can, in extreme and prolonged cases, lead to a tax sale process — this is a real risk only when arrears go unaddressed for an extended period, which is exactly why flagging and addressing this early matters
Other liens that can show up on title
Beyond property taxes, a title search as part of preparing to sell can reveal other registered charges — things like a builder's lien from unpaid renovation work, a judgment registered by a creditor, or other encumbrances the deceased may not have fully resolved. Each of these gets addressed the same general way: identified through the title search, then paid out or otherwise cleared as a condition of closing, coordinated by the lawyer or notary handling the file.
Why early discovery matters: Mark Jontz routinely recommends pulling a full title search early in the process — well before a home is actively listed — specifically so any taxes or liens are identified and a plan is in place, rather than surfacing as a surprise during the closing process when it can delay a sale that's already underway.
What this means for the sale timeline
In the large majority of cases, unpaid taxes or routine liens don't prevent a sale — they simply get paid out of proceeds at closing, the same as a mortgage. The main risk is timing: discovering a complicated lien late in the process, after a buyer's subjects have already been removed, can create real pressure. Getting ahead of this early avoids that entirely.
This page provides general information and is not legal advice. Every situation is different — please consult a lawyer or notary about your specific circumstances.