Liabilities for Closing Agents, and Realtor, on the death of Foreigners (Nonresident Aliens)
When a nonresident alien dies owning U.S> real estate, a 10-year IRS estate tax lien automatically attaches to the property. This lien is not typically recorded in public records, so it may not appear in a title search. If an IRS transfer certificate has not been issued, a buyer may unknowingly take ownership subject to this lien and potential tax liability.
In the article below, Ali Khan, Partner and Managing Director at AbitOS PLLC/LLC, explains the legal and tax implications that arise when a foreign property owner passes away, as well as the responsibilities that closing agents and Realtors must be aware of during the transaction process.
