Some of you are trying to sell your house without having paid your property taxes.
So who pays when a real estate transaction is finalized?
Unpaid liabilities are usually paid from proceeds to the seller at closing.
Yet increasing cash transactions and cash ownerships make it all the more important for buyers to check and double check items like tax status.
A good title search will reveal the unpaid tax status as well as any liens on the property. These items get first dibs on potential profits to the seller and are paid upon transfer of the property.
Are unpaid property taxes an indicator the seller is getting ready for foreclosure? Possibly.
Are unpaid property taxes an indicator the seller is an investor/speculator? Probably as most mortgage companies pay taxes.
If a deal is too slick, too fire sale, too urgent–check the tax status.
When buyers become deed holders, they are then responsible for any liabilities the property may incur or has incurred and has not yet been resolved.
