Quote:
Originally Posted by biosurfer1
Thanks for the advice everyone.
After talking to the assessor, they said I am most certianly NOT responsible for the back taxes. It never made sense to me why I could be responsible for taxes due more than a year before I bought the house. That being said, the taxes are secured to my house, but what most people said are correct, this is why you get title insurance. It was a foreclosure, and the taxes that were not paid by the original owner, so it has actually gone through 2 owners and they are still not paid (the bank, then me).
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I would disagree with the assessor's assessment...at least in most jurisdictions. Property ad valorem taxes constitute a lien on the property, perhaps even superior to a recorded mortgage or deed of trust. And really most controlling is what your deed from the bank says and what type of deed it is. For example, if it were a warranty deed, the seller (bank) warrants title to you subject to whatever exceptions are spelled out in the document. Usually, a WD only excludes current year taxes for which you will be subject to. If this is the case its up to the bank as seller to make good on its "warranty" of your title and correct the tax issue. If it were merely a Quitclaim deed (unlikely), the the seller is only conveying to you whatever title they have in the property, if any. For example, I can sell you the Brooklyn bridge and convey it by quitclaim deed...all I'm doing is selling you whatever interest I have which may be nothing. You proceed at your peril. If the bank conveyed to you by quitclaim, you could be potentially liable for the back taxes. Another type of deed is a trustee's deed which is what the bank got when the property was foreclosed on...and sometimes a trustees deed can wipe out all liens subordinate to the note in default...however property tax liens are not wiped out in my state. YMMV
Ultimately I don't think you'll be responsible for the old taxes...but they still constitute a cloud on your title that will ahve to be corrected/removed. And that's where the escrow agent/title insurance company/seller come in. They will be responsible for correcting the mess. Sadly, it is unlikely they can legally go after the prior owner who was foreclosed on.
If I were in your shoes, I would write a firm, succinct letter to the title insurance company and the escrow agent/company and say : "It has come to my attention there is a cloud on the title to my property in the form of unpaid prior year taxes as a result of your negligence. Please correct this matter immediately. My attorney has advised me to allow you thirty days to resolve your error. Otherwise, place your E&O carrier on notice. "
Send it by certified mail.
CC the bank who sold it to you and your mortgage company.
It should get fixed in short order.
PS: Rob911..see, you're wrong about attorneys trying to jack up their bills.
