Title Company Mistake - incorrect property tax amount

Indianapolis, Indiana
Tax, SDIRAs & Cost Segregation
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Title Company Mistake - incorrect property tax amount

Sriram Akkati
Member since 2019 · 3 posts · 0 votes

Hi All,

Can anyone advise me? I really appreciate help here.

I bought a property in Indiana, Marion County on 3/9/2022 through a wholesaler, it was a cash deal.

At the time of closing, the title company generated the online tax statement from the county office and paid outstanding tax dues ($74 – special assessment for sewer code violation by the previous owner) towards the final closing.

As per the county office, tax assessment happened on 3rd week of march-2022. So title company missed in calculating the correct tax (2021 payable 2022) credits in the final closing statement.

Now I owe tax dues of ~$4500 (2021 payable 2022) to the county. Does anyone have this kind of experience in Indiana? Can anyone advise me the next steps? Can take legal help here? pls advise.

-Sri

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Sriram Akkati:

Hi All,

Can anyone advise me? I really appreciate help here.

I bought a property in Indiana, Marion County on 3/9/2022 through a wholesaler, it was a cash deal.

At the time of closing, the title company generated the online tax statement from the county office and paid outstanding tax dues ($74 – special assessment for sewer code violation by the previous owner) towards the final closing.

As per the county office, tax assessment happened on 3rd week of march-2022. So title company missed in calculating the correct tax (2021 payable 2022) credits in the final closing statement.

Now I owe tax dues of ~$4500 (2021 payable 2022) to the county. Does anyone have this kind of experience in Indiana? Can anyone advise me the next steps? Can take legal help here? pls advise.

-Sri


 So you owed the taxes. The title company shouldn't have to pay tax you owe. Just pay them. They are at least a tax deduction for you.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Sriram Akkati:

    Hi All,

    Can anyone advise me? I really appreciate help here.

    I bought a property in Indiana, Marion County on 3/9/2022 through a wholesaler, it was a cash deal.

    At the time of closing, the title company generated the online tax statement from the county office and paid outstanding tax dues ($74 – special assessment for sewer code violation by the previous owner) towards the final closing.

    As per the county office, tax assessment happened on 3rd week of march-2022. So title company missed in calculating the correct tax (2021 payable 2022) credits in the final closing statement.

    Now I owe tax dues of ~$4500 (2021 payable 2022) to the county. Does anyone have this kind of experience in Indiana? Can anyone advise me the next steps? Can take legal help here? pls advise.

    -Sri


     So you owed the taxes. The title company shouldn't have to pay tax you owe. Just pay them. They are at least a tax deduction for you.

    1Reply
  • Pam Brown
    Real Estate Agent · Indianapolis IN · Member since 2022 · 144 posts · 65 votes
    3y

    Hello.  The title company should be glad to explain the tax amounts to you.

    Sometimes wholesalers do not prorate the taxes. Which is customary here in Indianapolis.  But not mandatory to be written up that way.  Maybe that is where the discrepancy lies. That would be in your purchase agreement.  Good luck

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Sriram Akkati

    What does the contract say about taxes? Did you also get title insurance ?

    7e investments53 Reviews
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  • Sriram Akkati
    OP
    Member since 2019 · 3 posts · 0 votes
    3y

    @Chris Seveney

    The contract says it’s prorated to pay by Sellor till the purchase. I don’t have title insurance.

    0Reply
  • Sriram Akkati
    OP
    Member since 2019 · 3 posts · 0 votes
    3y

    @Pam Brown

    The contract says it’s prorated taxes between Sellor and buyer based on purchase date. Its monument title insurance company.. at least I mention the name here .. so that anyone who goes through this title company in future should be aware of this.

    0Reply
  • Pam Brown
    Real Estate Agent · Indianapolis IN · Member since 2022 · 144 posts · 65 votes
    3y
    Quote from @Sriram Akkati:

    @Pam Brown

    The contract says it’s prorated taxes between Sellor and buyer based on purchase date. Its monument title insurance company.. at least I mention the name here .. so that anyone who goes through this title company in future should be aware of this.


     Hello.  I closed over 75 transactions last year and about half of them were with Monument Title in Indianapolis.  They are a very good title company.  Please send me a DM and I can connect you with the Office Manager there so he can help you out.  Pam

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