Adam Leitman Bailey, P.C. Navigates Tax Liens and Forces Closing

By Jack Erdos

office manhattan

Attorneys at Adam Leitman Bailey, P.C. represented the buyer of a professional office space in a luxury building on the Upper East Side of Manhattan whose contract of sale was in jeopardy after a lien and judgment search revealed federal and New York State tax liens that the seller was unable to fully satisfy out of the proceeds from the sale of the unit.

Immediately upon learning of the tax liens encumbering the unit, Adam Leitman Bailey, P.C. called the seller’s attorney and was initially told that the seller did not have sufficient funds to pay the deficiency between the tax liens and the proceeds from the sale. In response, Adam Leitman Bailey, P.C. strongly encouraged the seller’s attorney to apply for a Certificate of Discharge from Federal  Tax Lien pursuant to Internal Revenue Code Section 6325(b) which would have removed the liens from this specific property only so that the unit could have been transferred to the buyer free of any tax liens (see IRS Form 14135).

After the seller’s attorney failed to timely apply for the discharge of tax lien as recommended, attorneys at Adam Leitman Bailey, P.C. sent the seller a letter unilaterally designating a “time of essence” closing date within (30) days, and further advised that in the event the seller was unable to fully satisfy or discharge the tax liens within said thirty (30) day period, the buyer would cancel the contract and be entitled to the return of the contract deposit plus reasonable costs and expenses.

Shortly after sending the “time of essence” letter to the seller’s counsel, the seller agreed to borrower funds from a third-party to pay the tax liens in full. The parties closed the sale and Adam Leitman Bailey, P.C. negotiated a substantial closing credit for the buyer due to the delay in closing by the seller. Adam Leitman Bailey, P.C.’s innovative approach to problem solving and comprehensive understanding of the Internal Revenue Code was crucial to achieving a successful outcome.

Jack Erdos, Esq. and Andrew C. Jorges, Esq. represented the buyer in this matter.

Related Attorneys

Jack Erdos Andrew C. Jorges

Related Content

“We are finally at the point in time when I can say thank you so much for your phenomenal work. Your faith in this case was wise and the outcome matches.” “Hard work and risk pays off for closing” “ROCKSTAR. That’s what you are…Jackie…How can I thank you enough for all the work you have done…” Adam Leitman Bailey, P.C. Prevails at Traverse Hearing, Defeats Borrower’s Motion to Vacate and Dismiss, and Wins Judgment for Lender ALBPC Twice Saves Tenant’s Business from Certain Death ALBPC Releases Daughter, Mere Accommodation Signer on Lease, from Lease and Allows Her to Avoid Nonpayment Proceeding Adam Leitman Bailey, P.C. Gets $215K for Board after a Botched Common Charge Lien Foreclosure Adam Leitman Bailey, P.C.’s “Watershed Case” Changes Condominium Development Original Promissory Note Lost—Lender Satisfied UCC 3-804 and Entitled to Judgment Q&A: A Broken Shower Non-Disclosure Agreements Defend Against Fishing Expeditions Adam Leitman Bailey, P.C. Prevails at Traverse Hearing, Defeats Borrower’s Motion to Vacate and Dismiss, and Wins Judgment for Lender (Part I) Christopher Halligan Speaks to the New York State Bar Association on Jury Trials in Landlord – Tenant Proceedings Adam Leitman Bailey Lectures for New York State Bar Association on Easements, Adverse Possession and Arcane Laws to Overcoming Building Obstacles Adam Leitman Bailey Guest Lecturer at New York Law School’s Landlord-Tenant Class NYSBA – Removing Real Estate Development Obstacles: Zoning, Restrictive Covenants, Easements, Adverse Possession and Boundary Disputes

Adam Leitman Bailey, P.C.