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

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.

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.

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

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

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.

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.

Confirming tax status with the city asap.

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

This should be a simple question for a lawyer.

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

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.

Not really a question to ask here, maybe ask a Tax Attorney!

👍👍👍👍👍👍👍👍👍

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

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)

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

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:

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.

The tax man NEVER goes away empty handed.

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

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

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.

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

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

Maine Taxes
 

[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.

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

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

Reply
 

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

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.

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.

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.

Yes, simple and straight forward answer.

Pay It
 

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.

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.

Paying taxes missed by the title company
 

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

taxes
 

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.

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

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