Updated about 8 years ago on . Most recent reply
Buying from a wholesaler- contract & fines/taxes
Evaluating a deal from a local wholesaler I need opinions and any experience on this type of situation with back taxes and accruing fines is much appreciated!
1 acre property with 1930 condemned home with asbestos siding. Required to be demolished before county will stop adding to fines ($250/day) currently at $7250. Demo estimate is $8-10k, back taxes due are $4k. Asking $27k. Raw land value is $50-55k
Plan is to use as primary residence in future.
Main issues are:
1. the wholesaler is stating that the current owner will be paying the taxes and code violation fines. How would this work in a contract if they haven't paid to date why would they pay after closing?
Can I have them transfer funds to me at closing in the estimated amount?
2. I've asked for a copy of the contract they have with the seller, they are wanting to do a double closing and I want to make sure I'm covering all my bases. Am I better to offer lower price and then be responsible for the fines and taxes being paid by me? Or offering a higher price with a clause that they somehow will guarantee payment of fines and taxes?
Thanks everyone in advance!!
Chantel
Most Popular Reply
Got the contract copy, not penalizing them for showing me. They have the seller/owner paying the taxes $4k and then their llc to pay code fines, so I think we will have their llc agree to give funds for fines at closing.
Thank you both!