Am i legally obligated to pay property taxes missed by the title co.?

[boxcarwilly]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

[Jayhawk]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

Is it your debt? If it is, I think you know what to do.

[retiredguy123]

If you owed the taxes on a property you owned, then, I would think you are obliged to pay the tax. Just because they made a mistake doesn't relieve you of the tax liability. But, as far as putting a lien on your house in The Villages, that sounds like a premature threat. They would need to sue you, get a judgement, and then, if you don't pay the judgement, they can try to seize any assets you own as part of a collection process, to include a lien on your Villages house. But, if you really owe the tax, and they made an honest mistake, the best thing to do is to pay the tax.

[rustyp]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

Ask your lawyer. Are you really going to take advice from an internet blog ?

[kathyspear]

One of the many documents we signed during each of our home sales/purchases states that if an error is made and we owe money, we will pay it. I suspect you signed something similar. Check your documents.

kathy

[villagetinker]

I would have thought they would have had some from of a performance clause (like H&R Block has) where they would be liable for this, HOWEVER, you are dealing with lawyers, a fight you probably cannot win. IMHO, the taxes must be paid, if you can find someone with a legal background to look at your agreement with your "title company" thay may be able to tell you if this is worth pursuing, but I doubt it.

[Marathon Man]

Do you actually owe the taxes?

[Stu from NYC]

Do you actually owe the taxes?

Agreed are the taxes from the period you own the home? Would think if you owe it than you might want to discuss with attorney to determine your liability.

[boxcarwilly]

Do you actually owe the taxes?

Confirming tax status with the city asap.

[Topspinmo]

Lawyers and law? (who makes them Bottom line you pay! If it was me I would pay it quickly before they start adding fees.

[biker1]

This should be a simple question for a lawyer.

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

[Maryc7878]

If you were living in the home for Half the year, you owe Half the taxes.

[Mosells]

Does the title company have O & E insurance ( omissions and errors) ? If so that insurance should kick in. We’re not talking about 15 thousand dollars. After all is said and done you would have paid the tax owed through the closing of your home, so instead of paying it then, pay it now. No one is entitled to a free ride.

[Daxdog]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.
Not really a question to ask here, maybe ask a Tax Attorney!

[jeffy]

One of the many documents we signed during each of our home sales/purchases states that if an error is made and we owe money, we will pay it. I suspect you signed something similar. Check your documents.

kathy

👍👍👍👍👍👍👍👍👍

[stadry]

are you legally obligated ? yes ! are you morally & ethically obligated ? depends. this is a questions only you must answer. by asking your original question, it certainly influences my opinion as it obviously does w/others. big deal, right ?
all that being said, probably the worst that can happen is your credit score will suffer a ding or 2. the cost of collecting $ 1,500 interstate isn't worth the effort. this debt will likely be assigned/sold to a collection agency for $ 1.00 & you'll occasionally receive 'pay up' letters. you can ignore them until the 1 that says 'see you in florida court !'
caution: IF you make a partial payment, a court would view that as confirmation & admission of debt thereby strengthening their claim.

then again, i suspect you know the answer & have all along

[dewilson58]

It all depends on what the buy/sell agreement states.
+99% of the doc's indicate the seller is liable thru date of sale.
However, everything is negotiable during a buy/sell and it is possible you do not.
The City/County won't come after you, they look to the current owner.
(Not legal advice)

[jay425]

Lawyers have Errors & Omissions Insurance to handle this. Its their mistake not yours. They presented a closing statement and that's that.

[Two Bills]

TOTV is also able to answer questions on DIY brain surgery, haemorrhoid removal. teeth ectractions etc.
No need to go to anyone whose actual expertise is the subject in question!:icon_wink:

[Dana1963]

We had a similar circumstance in Florida Collier County a tax lien on a property purchase there was a missed on title search and Collier County billed us. Our Closing Attourney and Realtor forced it back to the Title Company and it was paid by them. Was there a title search done on property sale? That may be why its called Title Insurance.

[fastboat]

The tax man NEVER goes away empty handed.

[ficoguy]

It may not have showed up in the search. But if the previous owner did not pay it, its yours to keep - maybr an attorney could make a threat but it wouldn't be worth the money

[davem4616]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.


have a conversation with an attorney from the state that you left and do the right thing

trying to do battle with a legal firm by yourself is akin to going to a gun fight with a knife

[nn0wheremann]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.
You would do well to hire a lawyer to review your contract, and see what exactly it says your obligation is. Problem is that you might spend a third of what they say you owe to avoid paying, or to find out you have to pay after all. It is a roll of the dice.

[neilbcox]

Title companies are licensed...file a complaint with the licensing board. In the meantime pay the bill.

[Stu from NYC]

TOTV is also able to answer questions on DIY brain surgery, haemorrhoid removal. teeth ectractions etc.
No need to go to anyone whose actual expertise is the subject in question!:icon_wink:

Darn thought this was a one place fits all place to ask questions

[Alaska Butch]

[QUOTE=boxcarwilly;1763360]Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in Advance”

Yes. I suspect you do. I once closed on a home and the county clerk came after me the next tax year fir the taxes.

[wamley]

I think they call it TITLE INSURANCE for a reason. But state tot sate they may not include taxes.

[karostay]

It will not go away just continue to build late charges pay asap
Been there done that

[HimandMe]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

I don’t think most of would say let others pay the debt if you know it is yours.

[retiredguy123]

It sounds pretty clear that the closing attorney made a mistake and that you owe the tax. I would pay the tax and forget about it. You will sleep better.

[Shacarr]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

The right thing to do is pay the back property taxes. You signed affidavits at closing stating that your condo was free and clear of all liens. Even tho the title company
inadvertently missed the back taxes it was your responsibility to mention at closing.

[Sandy and Ed]

Your question regards "legal" responsibility and does not ask about the more important question of "moral" responsibility. Did you own the realty for the period that the taxes cover? If so, you should pay your taxes. Not acceptable to saddle the new owners of the property with your tax debt. Unless of course somehow the tax debt was disclosed as an offset of some type. I am not an attorney just trying to follow the logic of your question which would otherwise seem to have a simple answer: pay the bill.

[bagboy]

One of the many documents we signed during each of our home sales/purchases states that if an error is made and we owe money, we will pay it. I suspect you signed something similar. Check your documents.

kathy

Yes, simple and straight forward answer.

[Scorpyo]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

Let's see, what's the worst that could happen it you paid it. You'd be paying a debt you incurred. What the worst that could happen if you don't pay it. Collectors, aggravation, maybe a judgement, a negative on your credit, legal fees if you want legal advice, more aggravation. So, if you have the time and stomach don't pay.
If I'm not mistaken Title Insurance covers the buyer. If they find liens later then they pay or correct them. It doesn't protect the seller. So, read your documents carefully. If you cannot find something obvious that excludes you from liability then I'd pay but again, if you like drama don't pay and go for it.

[erojohn]

I would say your liability is to the taxing authority not the title company. The taxing authority will be the ones that come after you. They will get their due.

[bebemary]

Are you honest or not ? If honest pay what is rightfully your bill.

[Tennisbum]

If you look through the reams of paperwork you signed at closing you will find a "Tax Re-Proration Agreement" (or something close) that states that the closing agent is not liable for additional taxes. The actual taxes is different then stated will be adjusted between the two parties. You will owe something, just pay and move on.

[Fred2016]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

Did you pay for title insurance during your sale? If you did that is on them not you.

[soniak4@gmail.com]

This is an easy one: If you have any morals, you will pay it because you have an obligation to pay it.

[greenflash245]

you best pay it or you'll be living in the boxcar!!!

[Scorpyo]

I would say your liability is to the taxing authority not the title company. The taxing authority will be the ones that come after you. They will get their due.
The Title Ins may have paid the tax so that their would not be a lien on the property. This is what the insurance is for. If not they could have simply ignored it and let the taxing authority go after the seller. IMHO

[dalesairplane]

If they overcharged you, would you expect a refund? I assume you would, so this would just be the reverse. Pay what is owed.

[rferg40]

Your property, your taxes, your debt and their mistake. Pay the tax and ask the law firm to pay any penalties and interest since that would likely be their fault.

[jgmroc67]

Buyers pay the TI, sellers do not

[Daddymac]

And My whole life i been using attorneys, Never again, I have Talk Of The Villages.

[RayAmb]

JUST BLOWS MY MIND , how many people could even consider how to get out of paying a debt they are responsible for. Just the consideration says so much about them. Do you actually think you won’t have to answer for everything you do in this life ? PLEASE STOP AND THINK ABOUT YOUR DECISIONS.

[Marathon Man]

Confirming tax status with the city asap.

Why was this not step one? Instead of asking a group of honest people if you can get out of paying your taxes because of a mistake.

[Stu from NYC]

And My whole life i been using attorneys, Never again, I have Talk Of The Villages.

So true and if you need brain surgery look no further

[Curtisbwp]

I dont know how long you owned the maine property but YOU SHOULD HAVE KNOWN! The 1500 is your responsibility. My family and i are from west paris/woodstock. I lived in gorham for 20 years.

[Pommom91]

In real estate sales/purchases, there is normally a document you sign that says if something was overlooked and is brought to your attention afterward that you agree to fix it.

[rphil11ort]

if it went to court it would cost you more for an attorney. pay them

[mistervin]

Maybe the question is what’s the coverage and purpose of the Title Insurance? What is their responsibility?

[Fenster]

Ask your lawyer. Are you really going to take advice from an internet blog ?

This is not a yes or no question. Laws vary by state and jurisdiction. An adjustment should have been made at closing, and any open taxes should have been “picked up” by the title closer. You should consult with a Maine lawyer.

The is not not just a legal question. Someone has to check the closing docs to see where the money went.

[THUNDERCHIEF]

sold our condo in maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them asap. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.thanks in advance.
i think you need to pay the tax, however you might contact the tax department up north and confirm that 1500 is really due. Just to confirm that someone actually made a mistake.

[tvbound]

I think I would spend a couple of hundred getting a quick opinion by a good attorney, but further down the road having just paid the $1,500 may seem like a bargain-versus having your credit score adversely affected for years to come.

[retiredguy123]

I find it amazing and sad that someone would need to pay a lawyer to tell them whether or not they are $1,500 behind in their property tax payments.

[Big47moe]

The law firm should have insurance to protect them from their mistakes. Ask if the do! (pay if you need to clear it up)

[rstebbins]

you should the races. any penalty because they messed up should be paid by them

[carolar2000]

All free legal advice is worth what you paid for it. Ask your lawyer.

[GayleW1962]

You are responsible for payment of any taxes that were assessed during the time you were the owner up until the closing date. Any amount due should have been prorated as of the closing date. Your post says you sold in Maine (which I assume is where the unpaid tax issue lies) but then you mention a lien on property in the Villages. Liens for unpaid taxes follow the property and cannot be transferred to other property especially property in another state. I assume you did sign a document that said something close to inadvertent errors happen but you will take steps to correct them. It is a processor or closing agent's nightmare when errors occur and they have to reach out after a closing to either collect additional funds or have documents re-signed. You should ask the closing agent or whoever is requesting funds what the time period is that is due and also make sure that you were given credit (pro-ration) for days you were not the owner. A prior post mentioned title insurance - title insurance only insures any defects in the title and the chain of ownership - this will not apply in this matter. It is an unfortunate oversight or omission. You don't need to contact any attorney - just deal with the title company (In Maine a lot of law firms act as closing agents) or law office and make sure you understand the amount you are being asked to pay. My source of this information - I have been a paralegal in Maine since 1984 and have handled close to 3000 closings (I later was a foreclosure paralegal and foreclosed on the people I helped close). I hate to admit it but I have actually had to make these types of calls myself. Please let me know if I can explain myself further. Signed - a Mainer now but headed to my beloved home in Monarch Grove by January 1, 2021!

[rgoosman]

Read the policy. If it doesn't cover this then what is it for?

[Jayhawk]

Read the policy. If it doesn't cover this then what is it for?

Title Insurance does not protect the seller in a real estate transaction. It protects the BUYER, and coincidentally the Lender if there is one. Since the attorney / title agent missed it he may have to pay it to make the buyer whole, but he has full legal rights to pursue the seller for reimbursement.

Subrogation Definition (https://www.investopedia.com/terms/s/subrogation.asp)

[retiredguy123]

Title Insurance does not protect the seller in a real estate transaction. It protects the BUYER, and coincidentally the Lender if there is one. Since the attorney / title agent missed it he may have to pay it to make the buyer whole, but he has full legal rights to pursue the seller for reimbursement.

Subrogation Definition (https://www.investopedia.com/terms/s/subrogation.asp)
I don't think title insurance applies at all in this situation. The closing attorney made a calculation error and notified the seller in a timely manner. The seller owes the property tax. I may agree that title insuance may apply if this error was not discovered until several years later, but that is not the case.

[worcester]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.
What a question? Most people pay their debts.

A good friend (former bank president) told me it's a very simple process to get a lien on property.

[Travelingal702]

👍👍👍👍👍👍👍👍👍
The HONORABLE thing to do is pay the taxes!

[DDVeteran]

The title company will be on the hook for the unpaid tax. I would call their bluff, but that's me. If you're the type who likes pushing limits, which sounds like you are, go for it.
But your question is, are you "legally" obligated to pay the tax.The answer is a simple no. Not your house any longer, legally you owe nothing.

[Villagelee]

You know you owe the taxes, so why pay an attorney just be cause you want him to say No you don't have to pay. That isn't going to happen and you will be paying twice...once for the tax and 2nd for the snag in your character which lowers your self-esteem.

[Lindsyburnsy]

The title company’s job is to insure you that you are getting clear title. They missed those outstanding taxes. That’s what title “insurance “ is. They will fight you, but they need to play that bill. Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.

[jimlambert]

Sold our condo in Maine all went well but the title co(law firm actually) failed to include outstanding property taxes approx 1500.00. They want me to pay them ASAP. Am i legally obligated to pay this? They mentioned something to the effect they could put a lien on our new property here in the villages.Thanks in advance.
Why would you ask us? You’ll just get 20 different answers. I guess then you can pick out the one you like the most. Hmm...

[DDVeteran]

You know you owe the taxes, so why pay an attorney just be cause you want him to say No you don't have to pay. That isn't going to happen and you will be paying twice...once for the tax and 2nd for the snag in your character which lowers your self-esteem.

Actually, the OP doesn't owe any taxes, the tax has been paid.The title company is claiming he owes a debt to them as a result of their incompetence, nothing more. They erred, not the OP's fault. Unless contractually the OP is responsible for a title company error he owes nothing.
If this came to a judicial decision, it would benefit the defendant.

[mtdjed]

If there are taxes owed at the time of sale, would seem that the responsibility for payment would be determined at the time of sale by who gets the benefit. If taxes for the future, then the new buyer. If for the past, then the seller. If split simply divide.

[JoelJohnson]

Like I always say "If you think you own your home, don't pay the taxes on it and see who REALLY owns it".

[JCMSr]

Based upon my experiences having bought and sold numerous homes in the past forty years title insurance comes in two types of policies. The first one generally protects the bank/mortgage company from defects in the title. The second policy which can be purchased from the closing attorney protects the buyer. I am unaware of a title insurance policy that protects the seller(s).

If you were the seller in this transaction and there is nothing is the sales contract/agreement that says someone else is responsible for the back taxes then you would be responsible to pay the pro rata share of the taxes up to the day the property was transferred. If you go ahead and pay now you could save additional potential costs which could be assessed for interest and late fees. Rest assured if this matter falls back in the hands of the title insurance company and they end up paying it will not be long before you are contacted to reimburse them for this expense including applicable attorney fees. As many before me have already said, do the right thing and quit trying to get away with not paying what you rightfully owe.

[Jayhawk]

If this came to a judicial decision, it would benefit the defendant.

Wrong.

[bagboy]

You are responsible for payment of any taxes that were assessed during the time you were the owner up until the closing date. Any amount due should have been prorated as of the closing date. Your post says you sold in Maine (which I assume is where the unpaid tax issue lies) but then you mention a lien on property in the Villages. Liens for unpaid taxes follow the property and cannot be transferred to other property especially property in another state. I assume you did sign a document that said something close to inadvertent errors happen but you will take steps to correct them. It is a processor or closing agent's nightmare when errors occur and they have to reach out after a closing to either collect additional funds or have documents re-signed. You should ask the closing agent or whoever is requesting funds what the time period is that is due and also make sure that you were given credit (pro-ration) for days you were not the owner. A prior post mentioned title insurance - title insurance only insures any defects in the title and the chain of ownership - this will not apply in this matter. It is an unfortunate oversight or omission. You don't need to contact any attorney - just deal with the title company (In Maine a lot of law firms act as closing agents) or law office and make sure you understand the amount you are being asked to pay. My source of this information - I have been a paralegal in Maine since 1984 and have handled close to 3000 closings (I later was a foreclosure paralegal and foreclosed on the people I helped close). I hate to admit it but I have actually had to make these types of calls myself. Please let me know if I can explain myself further. Signed - a Mainer now but headed to my beloved home in Monarch Grove by January 1, 2021!

The OP can read this post and know the answer to their question. Thank you for your knowledgeable post and an early Welcome to The Villages!!!

[REDCART]

You are responsible for payment of any taxes that were assessed during the time you were the owner up until the closing date. Any amount due should have been prorated as of the closing date. Your post says you sold in Maine (which I assume is where the unpaid tax issue lies) but then you mention a lien on property in the Villages. Liens for unpaid taxes follow the property and cannot be transferred to other property especially property in another state. I assume you did sign a document that said something close to inadvertent errors happen but you will take steps to correct them. It is a processor or closing agent's nightmare when errors occur and they have to reach out after a closing to either collect additional funds or have documents re-signed. You should ask the closing agent or whoever is requesting funds what the time period is that is due and also make sure that you were given credit (pro-ration) for days you were not the owner. A prior post mentioned title insurance - title insurance only insures any defects in the title and the chain of ownership - this will not apply in this matter. It is an unfortunate oversight or omission. You don't need to contact any attorney - just deal with the title company (In Maine a lot of law firms act as closing agents) or law office and make sure you understand the amount you are being asked to pay. My source of this information - I have been a paralegal in Maine since 1984 and have handled close to 3000 closings (I later was a foreclosure paralegal and foreclosed on the people I helped close). I hate to admit it but I have actually had to make these types of calls myself. Please let me know if I can explain myself further. Signed - a Mainer now but headed to my beloved home in Monarch Grove by January 1, 2021!

Gayle, thank you for a very clear, and well-crafted post. Best wishes for your upcoming move to TV.