The Short Answer

A federal tax lien generally does not make a sale “impossible,” but it usually makes a normal closing difficult because the lien typically must be paid, released, or otherwise addressed before a buyer (or the buyer’s lender/title company) will accept title. In a Florida probate context, even if the personal representative has authority to sell, an existing lien on the property is not automatically wiped out by the sale.

What Florida Law Says

In probate, a personal representative may have authority to sell estate real property either under a power of sale in the will or (in some situations) with court authorization. However, Florida law recognizes that selling under probate authority does not automatically eliminate liens already attached to the real estate. That means a federal tax lien recorded against the property typically remains a title issue that must be resolved as part of the transaction (often through payoff from sale proceeds or a negotiated resolution).

The Statute

The primary law governing a personal representative’s sale of real property in Florida probate is Fla. Stat. § 733.613.

This statute establishes that a personal representative may sell real property in certain circumstances, but that existing mortgages or other liens against the real property are not affected by the sale.

Why You Should Speak with an Attorney

While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:

• Strict Deadlines: Probate sales can require court authorization/confirmation depending on the will and the type of administration, and delays can jeopardize a contract or closing date.
• Burden of Proof: Title companies typically require clear documentation showing who has authority to sell, what interests exist (estate, heirs/devisees), and exactly what liens must be satisfied or released.
• Exceptions: Whether the property is protected homestead, how title is held, and whether the lien attaches to the decedent’s interest (and to sale proceeds) can materially change the strategy and the risk to the estate and beneficiaries.

Trying to handle a liened probate sale without counsel can lead to a failed closing, a clouded title, or personal representative exposure if the transaction is structured incorrectly.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.