§6339 Legal Effect of Certificate of Sale of Personal Property and Deed of Real Property

Summary

A certificate of sale for personal property sold under section 6335 is proof that the officer had authority to sell and that the sale was done properly. It gives the buyer all of the delinquent person's ownership in the item. If the item is stock, the certificate tells the company to record the transfer and lets the company treat it like an assignment instead of the old stock certificate, which becomes void. If the item is a security or other debt paper, the certificate is a valid receipt against anyone claiming to hold it. If the item is a motor vehicle, the certificate notifies vehicle registration officials and lets them record the transfer like a title assignment; prior certificates become void. A deed for real property given under section 6338 is proof of the facts it states and, if the Secretary’s actions substantially followed the law, it transfers whatever right the delinquent person had in the property when the United States lien attached. A certificate of sale or deed under section 6338 removes other liens or claims that were lower in priority than the United States lien. For how surplus sale proceeds are distributed, see section 6342(b). For court procedures about surplus proceeds, see section 7426(a)(2).