Finding out you owe back taxes, or that there’s a tax lien on your property, is stressful. Maybe a few tax bills slipped by during a hard stretch. Maybe you inherited a house in Richmond and found out the taxes hadn’t been paid in a while. Or maybe a state or federal tax lien showed up and now you’re not sure you can sell at all.

I’m Joe with Richmond Property Buyers. I buy houses as-is for cash in Richmond and the surrounding area, and some of them have back taxes or liens. I’m not a lawyer, CPA, or tax advisor, so treat this as a plain-English overview, not legal or tax advice. For your exact payoff amount, payment plan options, or tax-sale deadlines, go to your city or county treasurer’s office (or whichever office collects real estate taxes where the house is), a tax attorney, or a Virginia real estate attorney.

What tax liens and back taxes mean for a seller

Simply put, a lien is a legal claim against a property that has to be dealt with before the property can change hands with clear title. Tax-related liens usually come from one of these:

Delinquent local real estate taxes. In Virginia, unpaid real estate taxes are a lien on the property itself. They’re owed to the city or county where the house sits, and penalties and interest usually keep adding up the longer they go unpaid.
State tax liens. If someone owes the Commonwealth (for example, unpaid income taxes), a lien can be recorded that attaches to real estate they own.
Federal tax liens. The IRS can file a lien for unpaid federal taxes. It isn’t tied to one specific house the way a real estate tax lien is, but it can attach to property you own and has to be handled in a sale.

Judgments, contractor (mechanic’s) liens, HOA liens, or old loans that were never released can show up too. The title search finds what’s recorded.

What happens if back taxes keep going unpaid

The short version: the balance grows, and your options shrink. Penalties and interest add to what you owe. If real estate taxes stay delinquent long enough, Virginia law allows the locality to pursue a court-ordered sale of the property to collect what it’s owed. The timeline, notices, and what you can do to stop it depend on the locality and the facts of your case. The treasurer’s office can tell you where your account stands, and a Virginia real estate attorney can tell you what your rights are if a tax sale has been threatened or scheduled.

What I can tell you is that waiting rarely helps. People who call early usually have more choices: a payment plan, a refinance, a traditional listing, or a cash sale. People who call after a sale date is set have fewer.

Can you sell a house with a tax lien in Virginia?

In most cases, yes. A tax lien doesn’t stop you from selling. It means the lien has to be paid (or otherwise resolved) as part of the sale so the buyer gets clear title. That’s true no matter who buys it.

For most sellers, the money to pay the lien comes from the sale itself. You don’t usually have to come up with the full amount out of pocket before closing, as long as the sale price covers what’s owed. That’s the main reason selling can be a practical way to settle back taxes.

How closing applies your sale proceeds to tax liens

Here’s how it typically works with a title company or closing attorney in Virginia:

Title search. After we sign a purchase agreement, the title company or closing attorney searches the public records for recorded liens, judgments, and loans against the property.
Payoffs. They request payoff figures from the treasurer’s office for delinquent real estate taxes, and from any other lienholders (mortgage lender, state, IRS, judgment creditors).
Settlement statement. Before closing, you see a statement showing the sale price, each lien being paid off, any current-year tax proration, and what you’ll take home. Ask questions before you sign.
Closing and payment. At closing, the title company pays the liens directly from the sale proceeds. You don’t have to carry checks to the treasurer yourself.
Releases. Once paid, the liens get released, and the deed is recorded with clear title. Whatever is left after liens, loans, and your share of costs goes to you.

If what you owe is more than the house will sell for, things get harder. Federal and state tax agencies have processes for releasing a lien from a specific property, but those depend on your situation. That’s a conversation for a tax attorney before you sign anything with anyone.

Listing vs. selling for cash when you owe back taxes

Listing with an agent can make sense if the house is in good shape, you can keep up with the taxes (or a payment plan) while it’s on the market, and there’s no tax sale on the horizon. You may net more on price. On the other side, you’ll usually pay agent commissions, may be asked to make repairs, and you’re depending on a buyer’s financing and appraisal going through. Meanwhile, penalties and interest keep running.

Selling directly for cash tends to fit better when time matters, the house needs work, or you don’t want showings and repairs. There’s no financing contingency, no repair list, and you help choose the closing date. The tradeoff is that a cash buyer’s price usually reflects the as-is condition and the risk they take on.

If you want to see these side by side, I lay it out on my listing vs. selling direct comparison page.

Back taxes in Richmond, Chesterfield, and Henrico

Every locality handles real estate tax collection its own way. The City of Richmond, Chesterfield County, Henrico County, and the surrounding counties each have their own offices, due dates, online account lookups, and delinquency procedures. Get a current payoff from the office that bills the property: the city for a house in Richmond, the county for one in Chesterfield or Henrico.

Situations that come up often around here:

Inherited houses with years of unpaid taxes. Often nobody was paying the bills while the estate sat open. The back taxes get settled at closing along with everything else. Probate and heirship questions belong with an attorney. My guide to selling an inherited house in Richmond covers more.
Behind on taxes and the mortgage. When both are behind, a lender may get involved too. If you’re facing foreclosure, read how to stop foreclosure in Richmond and talk to an attorney or HUD-approved housing counselor quickly.
Vacant or damaged houses. A house with back taxes is sometimes also dealing with code violations or neglect. If that’s you, my post on selling a condemned house in Richmond may help.

Before you decide: a short checklist

Call the treasurer’s office (or the city/county office that collects real estate taxes) for a current payoff and ask whether any tax-sale action has started.
Find out whether there’s also a state or federal tax lien, and get those figures.
Pull your latest mortgage statement if there’s a loan.
Ask whether a payment plan is available. If keeping the house is realistic, that may be your best option.
If a tax sale is scheduled or the numbers look upside down, talk to a tax attorney or Virginia real estate attorney before signing a contract.

How I buy houses with tax liens

My process is the same as for any house I buy; the title company just does a little more work. Full details are on how we buy houses. The short version:

Tell me about the property. Call or text (804) 293-0208 or fill out the form on my get a cash offer page. Please mention the back taxes or liens up front. I aim to respond within about 3 hours once I have what I need.
A quick look and a written offer. I buy as-is. No repairs, no cleaning, no showings. My offer is for the house. The liens get paid from your proceeds at closing, so what they change is how much you net, not what I offer.
Clear terms. I pay the seller’s normal closing costs, including Virginia grantor tax, and you pay no commission to me. Earnest money is negotiable and goes in the agreement. Sometimes I partner with another local investor on a purchase. If I do, I’ll tell you who’s on the contract before you sign.
Title work. A title company or closing attorney runs the title search, gets the payoffs, and prepares the settlement statement so you can see exactly where the money goes.
Close on your timeline. I can often close in about 7 days once title is clear, or later if you need more time. Liens are paid at closing, and you get the rest.

About price: I rarely lower an agreed offer. The exceptions are a serious defect neither of us knew about, or a lien that shows up in the title search that wasn’t disclosed. That’s why I ask about liens up front. A lien we both know about from the start is just part of the math. A surprise is what slows things down.

Common questions

Do I have to pay the back taxes before I can sell?

Usually not ahead of time. In most sales, delinquent taxes are paid from the proceeds at closing. Confirm your payoff with the treasurer’s office, and ask an attorney if a tax sale is already underway.

Can I still sell if the county has scheduled a tax sale?

Sometimes, but timing is everything, and the rules depend on where the case stands. Call a Virginia real estate attorney right away, and tell any buyer, including me, about the date immediately.

Will a tax lien lower your offer?

Not by itself. I price the house based on its condition and location, and known liens are paid from your side at closing. They reduce your net proceeds, not my offer.

Are you a real estate agent?

No. I’m a direct buyer, not a listing agent. If listing is the better fit for you, I’ll say so. You can find more answers on my FAQ page.

Talk it through with me

If back taxes or a tax lien have you stuck, you don’t have to figure it out alone. Get your payoff numbers, talk to the right professional about the legal and tax side, and when you’re ready to see what a cash as-is sale would look like, call me at (804) 293-0208 or request a cash offer. No obligation, and you’ll get a straight answer.

Sell Your Virginia House for Cash to Settle Tax Liens