[MIskra]

Had the same thing happen to us when we sold our house in another state, only we were the seller. Received a letter from the title company that we owed about $1,000 several months after closing. Talked to our realter who explained the reason why we owed the money (the buyer used the same real estate agency as we did). We sent a check to cover the cost to the title company and an email to the nice elderly couple who bought our house telling them not to worry as we were taking care of it. Sorry that your seller is a jerk. I think you would win in small claims court, if you want to bother suing the seller.

[DLJ1657]

I may be missing your objection to how the taxes were prorated at closing, but from what I read, here are my thoughts. As a paralegal specializing in real estate transactions for over 24 years in another state, I will say that standard purchase/sale contracts call for the proration of taxes based on the last known amount. If I am reading your complaint right, that is how the title company calculated the closing expenses. If the seller used the property as homestead and his tax bill reflected that reduced amount, regardless of how you are going to occupy the property, last year's bill is what gets prorated at closing. The seller is not obligated to pay a prorated share on any future bill - it is based on the last amount billed to the seller. (My apologies if I misread your complaint!)

[trekker954]

Originally Posted by Footer

I am in the same situation except the seller owes me $2000 for taxes. The seller lived in the house only 1 year so his taxes were based on the previous owner's homestead and SOH tax bill. The title company based the proration on the previous bill and we both signed a document saying we would adjust between ourselves when the actual tax bill came out.

Both realtors tried to get the seller to pay up but he ignored them. The only person to blame contractually is the seller. Everyone else did their job. What can you do? Move on.

From what I gather the issue here IS when the seller lives in the house such a short time. Yours sounds exactly like mine issue.

Actually IMHO, when recalculating to ask the seller for the correct amount, they only looked at the big number and did not take into account the other breakdowns. The true calculated number would have been closer to $750, but I would have been happy with $590 which remember was only for six months.

I still believe if the Title company had calculated the correct amount the seller would have gladly paid it.

[trekker954]

Originally Posted by DLJ1657

I may be missing your objection to how the taxes were prorated at closing, but from what I read, here are my thoughts. As a paralegal specializing in real estate transactions for over 24 years in another state, I will say that standard purchase/sale contracts call for the proration of taxes based on the last known amount. If I am reading your complaint right, that is how the title company calculated the closing expenses. If the seller used the property as homestead and his tax bill reflected that reduced amount, regardless of how you are going to occupy the property, last year's bill is what gets prorated at closing. The seller is not obligated to pay a prorated share on any future bill - it is based on the last amount billed to the seller. (My apologies if I misread your complaint!)

According to the Lake County Tax Collector, the seller benefited in 2019 from the original owners (house is 3 years old) Homestead but my seller wasn't homesteading and that recalculated January 2020. If the Title company would have called or accessed their website (again, according to the tax collector) rather than use the 2019 bill, the correct calculation without homestead would have shown. The Tax Collector said it is typical, but wrong, for title companies to do this and this often rears its ugly head. The tax collector said he often has to explain this to realtors as well.

[Marathon Man]

Originally Posted by Nevermore

You got a great deal at a crazy low rate. And now you are complaining about $590? Hardwood floors and a paid off bond. Count your blessings and stop letting this small sum of money eat up energy and time. Yes, small sum. Are you going to miss a meal? Fair, maybe not, but I would choose letting go of the aggravation.

Good advice, but not gonna be taken. Looks like $590 is a thorn.

[almondz]

When we closed, the bond was to be paid off by the seller, according to our contract. When we received our next tax document it said we owed on the bond. Contacted title company and they did same - went to seller for the money. Seller wouldn't pay - just like your situation. Title company is responsible for making sure documents are correct. They paid off our bond.

[Villageswimmer]

OP, I think it’s fair to say that if your title company’s agreement contains the verbiage posted in post 29, they are off the hook.

Was your title company Peninsula?

You might consult with an attorney to determine what he’d charge to write a letter. Only you know if it’s worth the trouble.

As to OP post wrt Lake County, Fruitland Park, etc. taxes, due diligence would include going on the Lake County website and viewing tax bills of your neighbors before purchasing the home.

There should be no big surprises when the tax bill arrives. It should be of great comfort that the bond was paid. That took a bug chunk off your bill.

[rmd2]

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.

And now you want to sue for a small tax issue?? Wow!!

[jgrason]

Look at your Villages contract. These two clauses address your situation. Note that any adjustment of tax prorations based on estimates is between buyer and seller and is contingent on signing an agreement to that effect. If you and the seller did not sign a statement that agrees that prorations (over and under) will be adjusted post closing at either's request, then you don't really have much of legal leg to stand on if you sue.

(h) PROPERTY TAX DISCLOSURE SUMMARY:
BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS
REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION.

L. Prorations; Credits:
Taxes, assessments, rent, interest, insurance and other recurring expenses of the Property shall be prorated through the day before Closing. Buyer shall have the option of taking over existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at Closing shall be increased or decreased as may be required by prorations to be made through day prior to Closing, or occupancy, if occupancy occurs before Closing. Advance rent and security deposits will be credited to Buyer. Escrow deposits held by mortgagee will be credited to Seller. Taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount, homestead and other exemptions. If Closing occurs at a date when the current year's millage is not fixed and current year's assessment is available, taxes will be prorated based upon such assessment and the prior year's millage. If current year's assessment is not available, then taxes will be prorated on prior year's tax. If there are completed improvements on the Real Property by January 1st of year of Closing, which improvements were not in existence on January 1st of prior year, then taxes shall be prorated based upon prior year's millage and at an equitable assessment to be agreed upon between the parties; failing which, request shall be made to the County Property Appraiser for an informal assessment taking into account available exemptions. A tax proration based on an estimate shall, at request of either party, be readjusted upon receipt of tax bill on condition that a statement to that effect is signed at Closing.

[J1ceasar]

JUst another reason to USE A LAWYER .......

[shut the front door]

OP, you have every right to be upset. You shouldn't have to pay for someone else's mistake. I hope all the people badgering you get cheated out of $590 and just let it go.
I'm also leery of people who have nothing better to do than dig through the history of a poster on this board. That's kind of creepy.

[Marathon Man]

Originally Posted by shut the front door

OP, you have every right to be upset. You shouldn't have to pay for someone else's mistake. I hope all the people badgering you get cheated out of $590 and just let it go.
I'm also leery of people who have nothing better to do than dig through the history of a poster on this board. That's kind of creepy.

If the OP had not bragged about the deal he got on the house, those "badgering" posts would not exist.

[dadoiron]

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.

Put a lien (20-50$) on the sellers new home or car until they pay the 590.

[dadoiron]

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.

Put a lien on sellers house or car (20-50$) for 590 owed.

[shut the front door]

Originally Posted by Marathon Man

If the OP had not bragged about the deal he got on the house, those "badgering" posts would not exist.

Oh, I get it! Whenever somebody gets a good deal, it's fine to cheat them out of money.
Great logic.