absolutely not unless you have specifically been instructed, in writing that you should. This is like any other personal information that would influence negotiations.  Now, if things are getting close the point where the seller will not be able to settle due to the liens, then you might talk to the seller to see if they would allow this information to be disclosed in order to explain to the buyer why they will not negotiate any further reduction.  You have said "your seller" so you  have a fiduciary relationship with this person. Even if the information is public record (and it may not be) I would not disclose without the seller's permission.

As long as the contract price is high enough to clear all leans at closing and is not going to delay the closing you should say nothing. By letting the buyer know the seller is having financial difficulties the buyer may use that to low-ball your seller. 

If it is going to be cleared before the sale, it should be okay.

The preliminary Title Search should show this for the buyer.  I do not see a reason to disclose it unless it will impact closing.  The county will not record until this is paid.  So if there is a lien sale coming up  or something that will impact closing or timing then by all means disclose.

Debbie-As long as the listing agent has verified that the liens can be paid off (either from equity or seller's cash), it's immaterial and shouldn't be disclosed.   But the listing agent needs to verify anything the seller tells him/her.  Get written pay-off demands for all liens and encumbrances asap because penalties add up fast and don't show on title reports.  

My opinion is that if the seller will have sufficient funds at closing to clear the liens it need not be disclosed.  That could put your seller clients at a disadvantage for negotiation.  The attorney will find it with the search and identify it needs to be paid off. DanaB 

Debbie  Great question.  Does this put the seller at a disadvantage?  Would this be considered a material fact?  As a Seller's Agent I would think it would not be disclosed unless laws, rules or regulations require it to be disclosed.  Is this why the seller is "motivated"?

If the liens are for unpaid property taxes and the seller has the equity to pay them off from their proceeds at closing I don't believe they need to be disclosed to the buyer. I recently had a situation where an offer came in and the seller told me that she had not paid the taxes for several years, something she never mentioned earlier. The preliminary title report showed the tax liens, they were paid from the sellers proceeds and there was no delay in closing the transaction. If this had been disclosed to the buyers agent the buyer would have probably tried to take advantage of the seller in the way of the amount offered. When representing a seller you need to do all you can to protect their interests as long as you do everything legally and ethically.

If the Seller has the funds to pay them it doens't need to be brought up at all.

I'd ask title to check on the existence of any liens or issues at the time of listing or earlier.  Sometimes these things can be cleared easily.  Other times not so much.  

If the buyers would be affected in any meaningful way, I'd tell them upfront or put it in the listing remarks.  If the lien will be satisfied through escrow, I'd tell the buyer's agent there's stuff on the prelim and it'll be taken care at COE.

As long as the purchase price covers the liens it should not be disclosed without permission from the seller.

Agent remarks section in the multiple listing on the property is a good place for initial disclosure.  Disclosure as early as possible when in negotiations, plus it should be discovered when title search is done on the property.  Creating goodwill through upfront early disclosure builds respect and trust.

Definitely a tricky situation, if the buyer is going to find it out on a preliminary title search before there is a fully executed contract, I'd rather have them hear it from us first.

You should check state laws and see if the property disclosure law needs an answer to the question.

I wish people would bring these things up in the forefront right away. Tax liens are deadly and break a deal. I'm a propoenent of asking these questions up from and trying to resolve them ASAP. Its one less big hurdle your going to have to deal with at some point, and it might as well be sooner than later! Your seller and the buyer will thank you in advance!

It depends on the states DRE rules and regulations, doesn't it? The prelim title report would list any liens or judgments and every buyer's agent should examine it prior to submitting an offer for their client.

All liens will be settled at COE, so I would insist that POF be included in the contract and a seller penalty be paid to buyer if the sale doesn't close because of the liens or judgments. 

If there will be a problem clearing them with seller proceeds - then disclose. If not, its nobody's business except the closer.

No point in disclosing since they will all be settled during closing, just like any other liens.

As long as the proceeds form the sale cover the issues it doesn't need to be an issue on negotiations

Here, we must disclose any material or financial facts about the property or the client's ability to close. Liens will come up on title search anyway. The easiest way to deal with this so all parties are comfortable is to tell the buyer's agent up front that the liens exist and will be paid out of the seller's proceeds at closing. If the seller is able to pay off the liens prior to listing the property, better yet.

I would disclose this information upfront. Depending on what type of tax liens they are and who they are with; tax liens can take more time to clear than you think (perhaps 90 days). I run into this issue often with short sales. Certain buyers may not be able to wait 90 days to close, so they should be told upfront that risk exits. 

You should and will find it beneficial to let all parties know because if you don't you will be tempted to deceive when you need an extension.

Recently sold a $170,000 house with $230,000 in liens. I negotiated those, got them paid off (pennies on the 100 dollars) and we closed. Buyer got really, really, really nervous.

Today, less the 5 months later the buyer sees they now have $67.000 in equity. The buyer willing to pursue encumbered real estate will reap the rewards of due those who take the pass less traveled.

Most certainly, DISCLOSE. This allows everyone to buy into the program without feeling ambushed and gives the agent the leverage needed to keep the buyer in the game.

As Nina said earlier it HAS to be disclosed in North Carolina. The seller does not have the option to not disclose. 

This is a material fact in North Carolina and would be shared in the property disclosure form as the tax liens impact ability to sell home.

I will disclose that to the buyer's agent during negotiations and have them make it a part of the contract

It really hits a gray area as we are not to disclose finacial but it could also stop the sale. In the contracts we use, the title must be clear when turned over to the new owner. Therefore, I would make sure the seller knows this and they have the money to make sure the title is clear.

We disclosure everything. Also, it is in a title report ( most of the times) and other disclosures we provide in first 7 days of the escrow. If it is a short sale, we might want to share all liens in advance, since the homeowner is not going to pick up any of them. 

I tell my Buyers up front.  That's my job, to keep them informed!

Debbie Reynolds - they will know anyways! So why not disclose it?

It will be taken care of at the closing - unless seller wants to take care of it much sooner. In that case, why disclose?

Will the seller have to bring funds to closing if the tax liens are cleared at the closing table. This is a difficult question to answer. What would you do?

absolutely. Have them read and sign the prelim.

Oooooh...that's a tricky one! Since I have a duty to disclose anything of material value, I would have to disclose it...but would do so  during negotiations.