Owner Finance Property Taxes

4 Replies


The current landlord of a 5-unit, all 2 bedroom 1 bathroom building, is willing to owner finance her property to me. She asked if I would like to pay property taxes to her assuming we transact and I buy her property. Anyone with owner finance experience know what the good or bad implications are of me paying property taxes in this way?

Is the alternative that I pay taxes directly to the government and what is the best way to establish those direct payments given we are doing owner finance?

@Justin Daniel Figueroa seller financing they sell  a property to you, transfer deed, and put a lien on it just like a bank lien. If they own the property outright that is.  The taxes would then be in your name. The seller can escrow them like a bank and the seller pays them for you or you can pay them directly to the town.  For the seller it is better to collect taxes and insurance to be sure they are paid. For you paying them directly might be better for the same reason, taxes are typically quarterly  so you need to plan and you need to pay them even if they don't send you the bill (which sometimes it takes them a while). If you want the seller to pay them they would add them to the mortgage payment so you need to put it in the paperwork.   It will then adjust when taxes go up. 

Originally posted by @Eric James :
Originally posted by @Michael Plante:

I would pay them yourself

then you know they are being paid 

 That's the same reason the seller wants to pay them. Just like a bank pays them when you have a mortgage.

 As I’m sure you know everything’s negotiable in a sale I would tell her I’m going to pay you do what you do