Full question:
We bought a home in Texas at the end of August 2008. The title company used 2007 property tax rates to determine amount paid to us by seller. 2008 rates ended up being much higher so seller underpaid us $800.00 for his part of property taxes. He is now refusing to pay it. We paid the tax office the amount owed for the 4 months we have owned the property and we paid the amount given to us at closing. The tax office is telling us we are responsible for the full amount. Can they hold us legally responsible for the sellers unpaid part? What can we do to fight this?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Texas
Answer:
As a homeowner, you are generally liable for property taxes, including any unpaid amounts from the seller. The tax authority is not a party to the sales agreement, so they are not bound by any terms regarding tax proration between you and the seller. If the seller agreed to prorate taxes in the sales contract but did not fulfill that obligation due to incorrect amounts, it may be difficult for you to recover the unpaid taxes from the seller unless there was a deceptive or fraudulent agreement. Typically, the seller must adhere to the terms of the sale in good faith. If there was no specific agreement for the seller to cover potential tax increases, you may have limited options for recourse against them.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.