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

Closed Thread
Thread Tools
  #31  
Old 05-12-2020, 08:22 AM
retiredguy123 retiredguy123 is online now
Sage
Join Date: Feb 2016
Posts: 14,253
Thanks: 2,345
Thanked 13,726 Times in 5,248 Posts
Default

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.
  #32  
Old 05-12-2020, 08:30 AM
Shacarr Shacarr is offline
Junior Member
Join Date: Oct 2018
Posts: 3
Thanks: 2
Thanked 0 Times in 0 Posts
Default

Quote:
Originally Posted by boxcarwilly View Post
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.
  #33  
Old 05-12-2020, 08:36 AM
Sandy and Ed Sandy and Ed is offline
Veteran member
Join Date: Oct 2013
Location: Pennecamp
Posts: 685
Thanks: 368
Thanked 617 Times in 301 Posts
Default

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.
  #34  
Old 05-12-2020, 08:48 AM
bagboy bagboy is offline
Soaring Eagle member
Join Date: Jul 2011
Posts: 2,219
Thanks: 225
Thanked 1,043 Times in 369 Posts
Default

Quote:
Originally Posted by kathyspear View Post
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.
  #35  
Old 05-12-2020, 08:49 AM
Scorpyo Scorpyo is offline
Senior Member
Join Date: Jun 2016
Posts: 376
Thanks: 85
Thanked 306 Times in 175 Posts
Default Pay It

Quote:
Originally Posted by boxcarwilly View Post
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.
  #36  
Old 05-12-2020, 08:50 AM
erojohn erojohn is offline
Member
Join Date: Mar 2013
Posts: 63
Thanks: 14
Thanked 26 Times in 19 Posts
Default

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.
  #37  
Old 05-12-2020, 08:50 AM
bebemary bebemary is offline
Member
Join Date: Oct 2008
Posts: 32
Thanks: 9
Thanked 10 Times in 7 Posts
Default Paying taxes missed by the title company

Are you honest or not ? If honest pay what is rightfully your bill.
  #38  
Old 05-12-2020, 08:51 AM
Tennisbum's Avatar
Tennisbum Tennisbum is offline
Member
Join Date: Mar 2020
Posts: 71
Thanks: 26
Thanked 159 Times in 36 Posts
Default 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.
  #39  
Old 05-12-2020, 08:51 AM
Fred2016 Fred2016 is offline
Member
Join Date: Jul 2019
Posts: 46
Thanks: 4
Thanked 18 Times in 15 Posts
Default

Quote:
Originally Posted by boxcarwilly View Post
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.
  #40  
Old 05-12-2020, 08:56 AM
soniak4@gmail.com soniak4@gmail.com is offline
Member
Join Date: Oct 2016
Posts: 71
Thanks: 219
Thanked 224 Times in 58 Posts
Default

This is an easy one: If you have any morals, you will pay it because you have an obligation to pay it.
  #41  
Old 05-12-2020, 09:12 AM
greenflash245 greenflash245 is offline
Senior Member
Join Date: Jan 2020
Posts: 253
Thanks: 3
Thanked 93 Times in 67 Posts
Default

you best pay it or you'll be living in the boxcar!!!
  #42  
Old 05-12-2020, 09:14 AM
Scorpyo Scorpyo is offline
Senior Member
Join Date: Jun 2016
Posts: 376
Thanks: 85
Thanked 306 Times in 175 Posts
Default Maybe

Quote:
Originally Posted by erojohn View Post
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
  #43  
Old 05-12-2020, 09:33 AM
dalesairplane dalesairplane is offline
Junior Member
Join Date: Mar 2017
Posts: 3
Thanks: 0
Thanked 3 Times in 2 Posts
Default

If they overcharged you, would you expect a refund? I assume you would, so this would just be the reverse. Pay what is owed.
  #44  
Old 05-12-2020, 09:36 AM
rferg40 rferg40 is offline
Junior Member
Join Date: May 2015
Posts: 11
Thanks: 0
Thanked 4 Times in 4 Posts
Default Real estate taxes

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.
  #45  
Old 05-12-2020, 09:57 AM
jgmroc67 jgmroc67 is offline
Junior Member
Join Date: Dec 2010
Posts: 14
Thanks: 8
Thanked 14 Times in 7 Posts
Default

Buyers pay the TI, sellers do not
Closed Thread

Tags
pay, property, title, obligated, taxes


You are viewing a new design of the TOTV site. Click here to revert to the old version.

All times are GMT -5. The time now is 05:48 AM.