It would make no sense having current year taxes being paid and not back taxes, but...stranger things have happened.

You're right. The attorney did have someone on the inside-- the judge. I bet you could fix a lot of tickets that way. ;)

You should have your copy of the Preliminary Title Report. Check and see if this item is enumerated as an exclusion from the coverage. This report contains a list of defects that would be excluded from coverage if the policy were issued from the date of the report. If it's in there, then the broker or escrow(weighted more towards your broker as he/she does have a fiduciary obligation) would have dropped the ball. If it's not in there, then I do believe the title insurer is liable.

Ed, I would have to take a closer look, but I believe it was listed in the exclusions.

Usually the escrow officers are usually right on top of these sort of matters, especially when it comes to taxes. Was there no indication on your Buyer closing statement?

I don't want to be the one to point fingers here, but put it this way, if your Broker/Agent was really sharp this matter would have been brought to your attention before you signed the papers. It is the Brokers fiduciary obligation to give full disclosure of all material facts so you can render an intelligent informed decision. My suggestion is to call your Broker first thing and inform him that he/she was in remiss of their obligation to fully disclose and press them for compensation for their oversight. Or else.

As a licensee myself, I'm always careful to read and reread the paperwork as each clause, every block that needs to be checked is vitally important, and the liability can be substantial. Brokers carry E&O insurance, errors and ommisions for just this sort of thing.

I re-read my closing statement and there is nothing about deliquent taxes anywhere. The only mention of property taxes is in two places. 1. was the $141.xx I owed for the last 9 days of 07' since I bought it on Dec. 22nd. and the other was stating what the property taxes installment was for this year, which was paid last week.

I finally got a hold of my uncle and went through everything with him, and according to him, I am at no fault or responsibilty. The deliquent taxes were noted in the correct spot where the escrow agent should have seen it and added it to the closing statement. He is about as dumb founded as everyone here how she missed it since the title report is the most important thing for the broker to read, and she must have read it to figure out what percentage I owed for the 1st installement of this year!

The only thing I should have maybe noticed was that it was not included in the closing statement, and mentioned something, but I did not notice anything while going through the signing, or I sure would have.

Well, that's good news for you. It appears prior year taxes were intended to be withheld from the seller's proceeds. Since the seller was a bank, they're less likely to balk at paying it versus an individual seller.

Geeeez...based on your tax proration for last year your taxes are $7,000+ per year???? Pricey.

Well the taxes "were" $5900 last year, not sure where the % got thrown off, but either way, it will be going down $1200 from now on. The previous owner bought at the peak of '05, so they got screwed for assessment.

edit: I have mello-roos, which is why they are a bit higher

So after 4 months of waiting, dozens of phone calls, two trips to the office, a regular letter to the agent, her boss and the CEO, and a certified letter to the same.... I finally got the deliquent property taxes paid today, so now I get my refund back!!!!

My house is finally mine, free and clear!

Dumba$$ escrow agents, since they did not pay on time, they racked up an extra $372 in penalty/interest...doubt they will be in business long!

Thanks everyone for the advice and support:)

Great news and congrats!