Dallas-Fort Worth Real Estate Investor Club

Offer on tax delinquent house

  • 26 Sep 2013 9:13 PM
    Message # 1399439
    When making an offer on a house with delinquent property tax, should I specifically put it somewhere on the TREC contract that some of the money will be going to county?  If I wholesale a property, obviously I'll tell the cash buyer just so there's no surprises.  But if the seller thinks they're getting $20,000 at the table, but the taxing authority collects $5,000 of that and they can only walk away with $15,000, will that cause any problems?
  • 03 Oct 2013 7:07 PM
    Reply # 1404492 on 1399439
    If you have this information, I think I would always err on the side of full disclosure and make sure that the seller is aware of what's going on. I think it's just a good/ethical way to conduct business in general.
  • 04 Oct 2013 1:45 AM
    Reply # 1404607 on 1399439
    Robin Carriger (Administrator)
    The seller should know they owe back taxes.  If they don't know, you're actually doing them a favor by telling them ASAP.  The title company will certainly tell them, so it's much better to avoid the last minute drama of the seller finding out they owe a lot of taxes at the closing table.
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