Are domain name penalties carried over to new owners?

[CaptainSalad2]

Example, if someone has a previously well ranked site, it tanks after Penguin, the original owner then decides not to renew and it’s brought up by someone else when it comes back onto the market.

Is the penalty still in place for the new owner or is google able to see the domain name is now registered to someone NEW and therefore wipe the slate?

Basically, should I start screening all of my future client’s domain names BEFORE they buy them from now on? Thanks

[jimbeetle]

Not as definitive as one would like but the best answer out there:

Can I buy a domain that used to have spam on it and still rank?
Matt Cutts - GoogleWebmasterHelp
[youtube.com...]
.

[edited by: Robert_Charlton at 7:29 pm (utc) on Jun 20, 2013]
[edit reason] added title to video link [/edit]

[CaptainSalad2]

Watched the video, so essentially unless you’re in the SEO industry or have fairly moderate knowledge of google penalties you wouldn’t have a clue and be penalised from the outset.

Wonder if tis is why we have the new .co suffix and other new suffix recently coming into the market? To pick up the slack from now blacklisted domains?