[trekker954]

I wasn't sure where to post this to get some insight into my recent purchase here in TV. Problem: I purchased a pre-owned home in June 2020 through the Villages Property using their title company. It was an open house so the realtor got his double commission. During this time, everything for me, a cash buyer (the seller owned the house outright which he bought in Feb. 2019) was to be done electronically including the closing documents, because of Covid. My closing costs seemed minimal. I was credited $1441 for 2020 Taxes from the seller. I am not using my homestead as I still have a home in South Florida for a few more months.

Fast forward to receiving my tax bill which was well over $5000. First I called the title company who said the value of my house increased and told me they used the sellers 2019 tax bill for me and he benefited from his sellers homestead for 2019. Lake County told me my seller had never applied for Homestead (he had a home in PA) so of course his taxes went up in January, but the Title company did not go to their website or call the office to make sure they had the correct estimated tax bill for the seller.

So of course the Title Co rep is no longer with the company but after checking they more or less admitted fault because they sent the seller a letter explaining the error in not collecting enough for me and kindly asked them to make a check out to me for $590 and send it to them and they would forward to me. Well, the seller told them to go pound sand that he felt he lost money on the deal as it was (as a snowbird, he lived in the house such a short time in 2019, and pretty much decided to sell it in February (although not listed until June) because of Covid.

The Title Company came back and said I could always get a lawyer and sue him. Yes thats what the Title Company said. I've never been to small claims court, but I'm assuming that is my only option and I have no idea how much that would cost and if I do have a case. I was copied on the letter the Title Company sent to the seller as well as his response. Does the realtor have any responsibility? He is aware as is his manager and they are supposedly still looking into how this happened.

Obviously who gets an attorney for such a small amount, but had the Title company applied the correct amount the seller would just have credited it the correct amount to me. If a suit is to be had, wouldn't I go after the Title Company. I'm just annoyed they were so lazy as not to call or go on the website to get the correct amount for the 2020 taxes. So I end up paying for my sellers taxes all year rather than just six month.

[Villageswimmer]

Originally Posted by trekker954

I wasn't sure where to post this to get some insight into my recent purchase here in TV. Problem: I purchased a pre-owned home in June 2020 through the Villages Property using their title company. It was an open house so the realtor got his double commission. During this time, everything for me, a cash buyer (the seller owned the house outright which he bought in Feb. 2019) was to be done electronically including the closing documents, because of Covid. My closing costs seemed minimal. I was credited $1441 for 2020 Taxes from the seller. I am not using my homestead as I still have a home in South Florida for a few more months.

Fast forward to receiving my tax bill which was well over $5000. First I called the title company who said the value of my house increased and told me they used the sellers 2019 tax bill for me and he benefited from his sellers homestead for 2019. Lake County told me my seller had never applied for Homestead (he had a home in PA) so of course his taxes went up in January, but the Title company did not go to their website or call the office to make sure they had the correct estimated tax bill for the seller.

So of course the Title Co rep is no longer with the company but after checking they more or less admitted fault because they sent the seller a letter explaining the error in not collecting enough for me and kindly asked them to make a check out to me for $590 and send it to them and they would forward to me. Well, the seller told them to go pound sand that he felt he lost money on the deal as it was (as a snowbird, he lived in the house such a short time in 2019, and pretty much decided to sell it in February (although not listed until June) because of Covid.

The Title Company came back and said I could always get a lawyer and sue him. Yes thats what the Title Company said. I've never been to small claims court, but I'm assuming that is my only option and I have no idea how much that would cost and if I do have a case. I was copied on the letter the Title Company sent to the seller as well as his response. Does the realtor have any responsibility? He is aware as is his manager and they are supposedly still looking into how this happened.

Obviously who gets an attorney for such a small amount, but had the Title company applied the correct amount the seller would just have credited it the correct amount to me. If a suit is to be had, wouldn't I go after the Title Company. I'm just annoyed they were so lazy as not to call or go on the website to get the correct amount for the 2020 taxes. So I end up paying for my sellers taxes all year rather than just six month.

Have you escalated your complaint to top management at the Title Company? They probably don’t want to be sued.

[graciegirl]

Originally Posted by trekker954

I wasn't sure where to post this to get some insight into my recent purchase here in TV. Problem: I purchased a pre-owned home in June 2020 through the Villages Property using their title company. It was an open house so the realtor got his double commission. During this time, everything for me, a cash buyer (the seller owned the house outright which he bought in Feb. 2019) was to be done electronically including the closing documents, because of Covid. My closing costs seemed minimal. I was credited $1441 for 2020 Taxes from the seller. I am not using my homestead as I still have a home in South Florida for a few more months.

Fast forward to receiving my tax bill which was well over $5000. First I called the title company who said the value of my house increased and told me they used the sellers 2019 tax bill for me and he benefited from his sellers homestead for 2019. Lake County told me my seller had never applied for Homestead (he had a home in PA) so of course his taxes went up in January, but the Title company did not go to their website or call the office to make sure they had the correct estimated tax bill for the seller.

So of course the Title Co rep is no longer with the company but after checking they more or less admitted fault because they sent the seller a letter explaining the error in not collecting enough for me and kindly asked them to make a check out to me for $590 and send it to them and they would forward to me. Well, the seller told them to go pound sand that he felt he lost money on the deal as it was (as a snowbird, he lived in the house such a short time in 2019, and pretty much decided to sell it in February (although not listed until June) because of Covid.

The Title Company came back and said I could always get a lawyer and sue him. Yes thats what the Title Company said. I've never been to small claims court, but I'm assuming that is my only option and I have no idea how much that would cost and if I do have a case. I was copied on the letter the Title Company sent to the seller as well as his response. Does the realtor have any responsibility? He is aware as is his manager and they are supposedly still looking into how this happened.

Obviously who gets an attorney for such a small amount, but had the Title company applied the correct amount the seller would just have credited it the correct amount to me. If a suit is to be had, wouldn't I go after the Title Company. I'm just annoyed they were so lazy as not to call or go on the website to get the correct amount for the 2020 taxes. So I end up paying for my sellers taxes all year rather than just six month.

I read this through twice, and although admittedly my husband handled all of the details of the eleven closings in our life, it looks on the face of it that you are angry at being surprised at the taxes. (My husband is not a realtor, he is just a smart guy)

Homes in The Villages are escalating like crazy right now, in fact that appears to be so just about everywhere.

I do not think anyone cheated you. I think you were just surprised at the amount of taxes.

I am not a realtor or an agent and we sold our home without a realtor once and it went well. I am not an expert and I really don't like realtors on the whole a lot because many of them pressure. I do really, really, really like Alemorkam, the photographer's wife and Mary Grant and Debbie Boehner back in Cincinnati. (She was my neighbor and friend, married to John Boehner) yes, that one. (We knew someone famous)

Our very favorite house seller in the whole world is Jim McLaughlin from The Villages.

P.S. I don't think anybody gets double commission for having an open house. Do they?????

[EdFNJ]

Small Claims Forms | Sumter County Clerk of Courts

FILING FEES for Sumter County Small Claims Court:

Due at the time of filing. The fee is based upon the amount of your claim.
Claims less than $100.00 ………………………………………... $ 55.00
Claims of $101.00 to $500.00……………………………………. $ 80.00
Claims of 501.00 to $2,500.00 ……………………………………$ 175.00
Claims of 2,501.00 to $8,000.00 ………………………………… $ 300.00
Issuance of Summons, each ……………………………………... $ 10.00
Create Summons Form, each ……………………………..............$ 7.00

[retiredguy123]

I don't understand how the title company could have gotten the estimated tax bill for 2020 in June. Mine didn't come out until mid-August. So, it seems logical that they would use the 2019 tax bill to calculate the sellers prorated portion of the 2020 tax for a June 2020 closing. Also, I don't see what difference it would make if the seller had or didn't have a homestead exemption, if they based the proration estimate on the seller's actual tax bill. I think it is typical for the seller to be responsible for an underestimated tax payment, so, I don't think the title company has any liability. I also don't think the real estate company has any liability either. So, I think your only option is to sue the seller.

[saratogaman]

The agent gets both halves of the commission in that situation -- the one due the listing agent and the one due the selling agent. Since it appears the same agent handled both, he/she is entitled to both halves.

[retiredguy123]

Originally Posted by graciegirl

I read this through twice, and although admittedly my husband handled all of the details of the eleven closings in our life, it looks on the face of it that you are angry at being surprised at the taxes. (My husband is not a realtor, he is just a smart guy)

Homes in The Villages are escalating like crazy right now, in fact that appears to be so just about everywhere.

I do not think anyone cheated you. I think you were just surprised at the amount of taxes.

I am not a realtor or an agent and we sold our home without a realtor once and it went well. I am not an expert and I really don't like realtors on the whole a lot because many of them pressure. I do really, really, really like Alemorkam, the photographer's wife and Mary Grant and Debbie Boehner back in Cincinnati. (She was my neighbor and friend, married to John Boehner) yes, that one. (We knew someone famous)

Our very favorite house seller in the whole world is Jim McLaughlin from The Villages.

P.S. I don't think anybody gets double commission for having an open house. Do they?????

I have to take issue with the statement that the OP wasn't cheated by anyone. The seller owes him $590 and refuses to pay him.

[Jayhawk]

Originally Posted by trekker954

I wasn't sure where to post this to get some insight into my recent purchase here in TV. Problem: I purchased a pre-owned home in June 2020 through the Villages Property using their title company. It was an open house so the realtor got his double commission. During this time, everything for me, a cash buyer (the seller owned the house outright which he bought in Feb. 2019) was to be done electronically including the closing documents, because of Covid. My closing costs seemed minimal. I was credited $1441 for 2020 Taxes from the seller. I am not using my homestead as I still have a home in South Florida for a few more months.

Fast forward to receiving my tax bill which was well over $5000. First I called the title company who said the value of my house increased and told me they used the sellers 2019 tax bill for me and he benefited from his sellers homestead for 2019. Lake County told me my seller had never applied for Homestead (he had a home in PA) so of course his taxes went up in January, but the Title company did not go to their website or call the office to make sure they had the correct estimated tax bill for the seller.

So of course the Title Co rep is no longer with the company but after checking they more or less admitted fault because they sent the seller a letter explaining the error in not collecting enough for me and kindly asked them to make a check out to me for $590 and send it to them and they would forward to me. Well, the seller told them to go pound sand that he felt he lost money on the deal as it was (as a snowbird, he lived in the house such a short time in 2019, and pretty much decided to sell it in February (although not listed until June) because of Covid.

The Title Company came back and said I could always get a lawyer and sue him. Yes thats what the Title Company said. I've never been to small claims court, but I'm assuming that is my only option and I have no idea how much that would cost and if I do have a case. I was copied on the letter the Title Company sent to the seller as well as his response. Does the realtor have any responsibility? He is aware as is his manager and they are supposedly still looking into how this happened.

Obviously who gets an attorney for such a small amount, but had the Title company applied the correct amount the seller would just have credited it the correct amount to me. If a suit is to be had, wouldn't I go after the Title Company. I'm just annoyed they were so lazy as not to call or go on the website to get the correct amount for the 2020 taxes. So I end up paying for my sellers taxes all year rather than just six month.

Think back to your post in June where you just bought the house. Remember your excitement at the deal you got? And estimated taxes are just that - estimated based on best available information. Take some time to reflect on your good fortune and enjoy. It's not like anyone went out of their way to cheat you. Peace.

Let me update you all since I started this post. I came up (from South Florida) on June 6, on Day 3 of a 2 week stay, I found my house (believe me I looked at tons, mostly just open houses so I didn't have to really deal with realtors. Anyway, it wasn't the model or the type or even location that I thought I wanted to live but I loved the neighborhood, and loved the house. It was a preowned TV properties, I did get a steal. Its in Pine Hills and is a designer built in 2017. The previous owner also paid cash and are you ready...........paid off the bond!!!! It was really only lived in about 10 months over the three years and never rented. It looks brand new and the owner replaced the carpet with hard wood (which was always on my checklist) I think in November. It was priced to sell quick and i did offer him under which he accepted.

[EdFNJ]

My first years taxes were 3 times what the original sellers was because his taxes were based on the original purchase price of the home in 2009 and mine was based on my 2017 purchase price PLUS my first tax bill did not include any of the homestead deductions because I closed after January 1st. It too was SHOCKED. It put a crimp in my tightly planned budget.

[graciegirl]

Originally Posted by retiredguy123

I have to take issue with the statement that the OP wasn't cheated by anyone. The seller owes him $590 and refuses to pay him.

I was wrong. I am sorry OP.

I will continue with my day and be happy about the vaccine.

[Villageswimmer]

Originally Posted by EdFNJ

My first years taxes were 3 times what the original sellers was because his taxes were based on the original purchase price of the home in 2009 and mine was based on my 2017 purchase price PLUS my first tax bill did not include any of the homestead deductions because I closed after January 1st. It too was SHOCKED. It put a crimp in my tightly planned budget.

Bingo! Many people don’t realize what an important factor purchase price is in determining tax assessment.

That said, though, OP did say that the title company admitted their error. I guess I think that that’s one of the reasons you pay a title company closing fees. Their role, I think, is to check the math and stipulate all is in order. Then they manage the closing.

[retiredguy123]

Originally Posted by Villageswimmer

Bingo! Many people don’t realize what an important factor purchase price is in determining tax assessment.

That said, though, OP did say that the title company admitted their error. I guess I think that that’s one of the reasons you pay a title company closing fees. Their role, I think, is to check the math and stipulate all is in order. Then they manage the closing.

I don't see where they made an error. The taxes can only be estimated at the closing, and either the buyer or the seller needs to pay additional taxes when the tax bill is generated. In June 2020, the projected tax bill had not been prepared by the county, so the title company had to estimate the taxes due by each party. This is the normal way to do it.

[Villageswimmer]

On second thought...
After reading Jayhawk’s post#8, I think I’d count my blessings. Sounds like you got a great price and bond was paid. Life’s too short...

[Bill14564]

Originally Posted by retiredguy123

I have to take issue with the statement that the OP wasn't cheated by anyone. The seller owes him $590 and refuses to pay him.

I believe "cheated" is too strong a word since it usually implies intent. I also believe the seller doesn't "owe" him anything. The seller could give him the $590 out of the kindness of his heart, but both agreed to the contract at the time.

Disclaimer: IANAL

The sale of the home is final on closing day, there are no "go backs" unless one of the parties can prove fraud. In this case both the buyer and seller should have been given the information to review prior to closing. The seller should have confirmed he was not paying too much, and he wasn't. The buyer should have reviewed the material to understand what he was paying and whether it seemed correct. Unfortunately, it would have taken some research to determine what the tax bill would be and what the proper distribution was.

The agent is only responsible for putting the parties together and negotiating the sale, they have very little to do with closing and certainly nothing to do with establishing closing costs.

It seems to me the title company should accept responsibility for the mistake. They were responsible for determining the closing costs - that's what they were paid to do. They made the error and they should work to correct it. At the very least, since they didn't properly perform the work they were paid to do they should refund the fee that they collected.

Due to the small amount in question and the cost of filing in small claims court it might just be best to let it go. Otherwise, you will certainly pay more in fees and frustration than you would be able to collect. Work with the title company and try to have them accept responsibility and maybe that will work. If not, feel happy with the price you paid, even with the mistake, especially since the previous owner paid off the bond which is worth far more than $590.

[Bilyclub]

You also are paying the annual maintenance fee in that tax bill and you should have gotten a prorated amount for that in the closing. Up North we paid the real estate taxes for the current year the next year. One last note, if you paid more for the house than the seller did, that tax increase is on you and not the seller.