I just found out the owner on the house I am trying to purchase still owes for 2006 taxes. He said he took out a loan to pay the taxes but that sounds like he will have a lien on the property. I am hesitant on trying to close on the house as I think that the debt will somehow fall on me. How do I make sure that I am not responsible for these taxes? Is there a way. This is in Texas.
2007-07-31 09:27:30 · 7 answers · asked by Blitz 3 in Business & Finance ➔ Renting & Real Estate
Any liens should show up on a title search, if the lien is there do not buy the house because you will then assume it until you have proof that it has been paid and the lien removed, you want the title free and clear
2007-07-31 09:32:53 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
When property sells all liens must be cleared at closing in order to provide the buyer with clear title. The taxes will be paid right up to the date you go into title from the seller's proceeds of sale.
2007-07-31 09:45:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the lien exists, it will come up on a title search. The lien will be removed via the title company out of the sellers proceeds from the sale.
The debt will not fall on you.
2007-07-31 09:58:57 · answer #3 · answered by godged 7 · 0⤊ 0⤋
I dont know about Texas, but where I am all back taxes will be paid out of the seller's proceeds at closing if there is a mortgage involved. If it is a cash purchase, be sure the taxes are paid before you close, with a paid receipt from the tax assessor's or county office.
2007-07-31 09:31:26 · answer #4 · answered by hirebookkeeper 6 · 0⤊ 0⤋
You may safely purchase the house if your title company properly researches the lien and what it will take to pay it off entirely, and then withholds an appropriate amount from the proceeds of the purchase/sale, with the check made payable to the lienholder. The title company/closing firm can handle this properly.
2007-07-31 09:52:45 · answer #5 · answered by acermill 7 · 1⤊ 0⤋
Did you write into the offer? Making the seller responsible for all past due taxes and assessments? It has to be agreed to in writing. Are you using a Realtor? If not, there's your first mistake. If you are and they didn't write this into your contract to purchase, then should be fired.
2007-07-31 09:52:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you are using a Realtor, ask them. They should know what to do in this situation.
If not, check with a real estate attorney in your area.
2007-07-31 09:31:21 · answer #7 · answered by mister_galager 5 · 0⤊ 1⤋