In Canada, Canada Revenue Agency can and will do that especially if you have not come forward with a repayment plan. I have seen it happen with one client I was helping refinance. The lawyer called me a few days before closing to tell me that there was a substantial lien on the property (CRA) and that if funds are not available, we cannot close. We spoke with CRA but the clients did not have a clear pay out plan with them so the deal did went south.

The lien would remain a debt and normally the lawyer would ask you to pay it otherwise the ownership is not transfered to the buyer. The lawyer of the buyer will not allow a clean transfer as the lien is not paid and there is a shortfall. You will have to pay if proir to closing.