Yes, you can sell a Texas house with unpaid property taxes or a tax lien, the lien is paid out of the sale price at closing, not from your pocket. Most owners believe a lien blocks a sale. It doesn’t. It just means the title company pays the taxing authority before you receive the remainder.
KEY FACTS FROM THIS GUIDE
- Liens are paid from the sale price at closing; you rarely pay out of pocket
- Texas penalties: 6% month one, up to 12% by July 1, plus interest and up to a 20% collection penalty (Tax Code 33.01, 33.07)
- Ohio and Georgia county treasurers offer payment plans that can stop the spiral
- The county payoff statement is public record; get it before negotiating anything
What happens if I keep waiting?
Texas property taxes are among the highest in the nation, and the penalties compound brutally: up to 47% in penalties, interest and collection fees in the first year alone. Taxing districts can foreclose, and in Texas, tax foreclosure moves much faster than mortgage foreclosure. Waiting almost always means losing more equity.
How does the sale actually work with a lien?
1. You accept a cash offer. 2. The title company orders a payoff statement from the county. 3. At closing, the title company pays the county directly out of the purchase price. 4. You receive the remaining cash. You never write a check to the county yourself, the debt simply comes off the top.
Every month adds penalties. A sale stops all of it at closing. Written numbers, licensed title company closings, zero pressure.
What if the taxes are more than the house is worth?
That’s rare in today’s Texas market, but if the total debt approaches the value, options still exist, negotiating penalty reductions, or a sale structured with the county. The only unfixable mistake is waiting until the county forecloses and the equity is gone.
What should I do now?
Get your payoff amount from the county tax office (it’s public record, we can help you pull it). Then get a written as-is cash offer so you can see exactly what you’d walk away with after the lien clears. Request your free Texas offer here, back taxes, code violations and judgment liens are everyday business for us.