Investor · Chicago, IL · Member since 2014 · 105 posts · 9 votes
My seller owes back taxes on the property, about $1k. He's unemployed and has no way to pay for them, how do I structure this so the back taxes get paid with my buyers funds?
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
11y
Have your non-refundable earnest $ deposit made payable to the county to pay the taxes. You can then re-shop the deal to another buyer with no taxes due if this one backs out. Get some disclosure doc in writing from the seller that they are aware they owe you (even allowing you a $1k lien on the property) if no deal happens through you. Just an idea. Hope this helps @Pedro Oliva.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
The taxes will be paid at closing from his proceeds, if he is providing a General Warranty Deed, he has no choice, the settlement agent will pay them and give him what is left over. :)
Investor · Cumming, GA · Member since 2015 · 181 posts · 38 votes
11y
@Pedro Oliva, @Bill Gulley is correct, the attorney will make sure the taxes get paid. This 1K will either come from your assignment or the buyer has to pay 1K more. So the seller will get 9k not 8k
Investor · Chicago, IL · Member since 2014 · 105 posts · 9 votes
11y
In my purchase contract does it have to say purchase for $9k that way the back taxes get paid or could I leave it at $8k for which is our agreed price And have the title company sort this out?