Liable for prior owner’s tax bill?

[Surfhunter]

I bought boat from an honest guy in NC, It has a free and clear NC title. When I went to SC to register, DNR said a prior owner (not the guy I bought it from) had not paid taxed from 2000- 2008. Now they will not give me a registration and say that the $5,000 tax bill is mine.

Any Advice?

[prowlersfish]

You need a lawyer , but see if the guy who sold it to you will take it back , as he sold it to you with a lien, knowingly or not .

[Chisox]

You need a lawyer , but see if the guy who sold it to you will take it back , as he sold it to you with a lien, knowingly or not .

X2

[striperon]

The liability attaches to the boat. Your "honest" guy in NC sold it to you "free and clear" of lender liens, but not tax liens. He apparently bought it with the liens. Was he just passing the issue off to you so he doesn't have to deal with it? You would do well to take the advice of the posters above. They are saying the right things.

[Surfhunter]

What type of lawyer is best suited to deal with this sort of thing? Anyone know of anyone good in Charleston?

Thanks,

John

[Whiteowl]

surfhunter, I don't have any advice but would like to understand your predicament so it doesn't happen to me. It seems like the your seller must have registered the boat in NC and you are trying to register in SC. It would seem like the tax lien was not a factor in NC so could you register the boat in any state except SC? Or did the guy you bought it from not have a current registration? If you can't register in another state and your seller did not have current registration it would seem like he was probably aware. If you can register in another state how can you check for liens prior to purchasing?

[Surfhunter]

The boat was registered in NC, and has a clean title from NC. Problem came when I went to register it in SC and they traced the title back a few steps to a dead beat who never paid his taxes in SC. Not sure if a title search would catch this or not.

I bet I could register the boat in any other state without a problem. The chances of me paying the tax bill are 0%. They want 5K which is about half of what I paid for the boat.

I'm a bit nervous to push the issue any further with the tax auditor, because they are just going to come after me now.

- John

[Whiteowl]

John, thanks for posting this. It is something I had never thought about. Good luck finding a way out.

[DFreedom]

Just when you can't think of another way to get screwed. I am not sure what the law is specifically but, it seems to me, a lien is a lien. Regardless of how it is encumbered, you cannot title the boat until you payoff the taxes. I would definitely go back to the seller and discuss this with him. Unfortunately, you probably will not get anything resolved without getting an attorney.

[Surfhunter]

No Liens are listed on the NC Title that I was provided. It seems SC should not have released the title to NC if they had a lien. In fact, I'm not sure if they technicaly have a lien, but this is all a learning process.

I still have not folow-ed up with the SC Tax auditor - don't want to kick a honets nest before I know what I am getting into.

R/John