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If any recent improvements - new appliances, flooring, painting, etc - are noted in the listing info, or are obvious, you should ask for confirmation that they have been paid in full. After closing, any outstanding balances will become your responsibility.
rwally, unless a lien has been placed against the property by these suppliers (supposing the owner has not paid them), there is nothing that can be done to the new owner. However, all liens and encumbrances should be removed at closing before title can change hands. And, we are all supposing this person is a real dead beat. This may not actually be the case. Shoot, if most of us were truthful and could actually get by with it, we'd let the taxes and HOA fees slide, too. If the "powers that be" aren't doing their job, then so be it.
"unless a lien has been placed against the property by these suppliers (supposing the owner has not paid them), there is nothing that can be done to the new owner."
I can't speak for the law in AL, but here in NC a mechanics' lien must be filed within 120 days "after last furnishing labor or materials". According to some of the "elders" in our practice, it is not uncommon for a savvy service/product supplier who has made a delivery, and is yet unpaid, to return just before the initial 120 day period expires to deliver a part/component/service omitted from the initial delivery so as to start the 120 day clock anew. Hence, no lien exists although one can be filed, and likely will be, if said services/products aren't paid for before going under contract. Bottom-Line: confirm newly installed products and/or rendered services have been paid-in-full and obtain proof of same, just in case.
Bottom Line: get Title Insurance. Title insurance is an insurance policy that guarantees the property title is free from the problems of hidden liens and claims.
It is strange that someone could pay cash for a home in 2006 and then not even pay the tax. I hate to mention this, but it could have been a drug dealer, or perhaps an executive of.....oh perhaps any US financial institution as many of them are crooks.
Seriously make sure you go with a good title company and if there is anything on the down low, they will either find it, or have to pay for it, if they insure the deed.
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