Under Contract and Found Delinquent Taxes...Who Pays?
I just put a property under contract that I plan on wholesaling. However, I just found out that there are $1,000 in taxes due on the property (delinquent). I trusted, but did not verify, the sellers word there are not taxes due before getting it under contract. Lesson learned!
My question is, who is responsible for paying these taxes?
In my purchase contract, it states the seller will pay their part of the closing costs, but I wasn't sure if this could be counted as the closing costs or not.
I am going to call the seller and ask him about it, but I wanted to get a feel for what is standard when this happens. $1k is probably not going to break the deal, but for a ~$20k house it's a fairly significant portion of the purchase price. Thanks!