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

Summary

When the government sells someone’s personal property for unpaid taxes, the sale certificate counts as proof that the officer had the right to sell and that the sale was done properly. The certificate gives the buyer all of the seller’s ownership rights. For stocks, the certificate tells the company to record the transfer and lets the company treat the old stock certificate as void. For bonds or other debt papers, the certificate acts as a valid receipt against anyone claiming them. For a motor vehicle, the certificate tells the title office to record the transfer and makes any earlier title certificate void. When real estate is sold, the deed given is taken as proof of the facts it states. If the Secretary largely followed the law, the deed transfers all the delinquent person’s rights in the property as of when the United States’ lien attached. A sale certificate or deed also clears the property of other liens or claims that the United States’ lien had priority over. Other parts of the law explain how to handle any extra sale money and court review.