SELLER REFUSING TO PAY BACK TAXES AFTER CLOSING

[Mark Lewis]

Hey BP’ers!

Has any here ever dealt with this situation before? 

I recently purchased two multi-family properties from the same seller in Monroe County, New York closing at different times and funded differently. One was a loan in my name with traditional funding and went fine. The second property was purchased with a commercial loan. We closed and I was told sellers attorney sent checks out to satisfy all taxes and water bills or so I though. 2 months later the back taxes totaling roughly $1,500 were never paid. Contacted my attorney and explained what happened then they said I am right. They reached out to seller’s counsel and basically, he said the deal took so long to close and he wouldn’t have been liable to pay them if we closed sooner. He could’ve walked away but didn’t. My attorney reached out to his attorney 2 times to no avail now they said I would have to take him to small claims court to try to get the money for the back taxes? Is that my only option because I feel the lawyers missed this and they should pay me out and they can chase him around for this balance? Has anyone dealt with this before?

Thanks,

Mark

[Greg Scott]

Is your attorney an expert on real estate?  If so, he has probably given you the best advice.

If it were me, I'd review your closing statement.  If it shows the taxes in there, they should have been paid by the closing attorney.  (His excuse about closing taking a long time is not a legal argument unless it was disclosed in your paperwork.)  If the attorney just chose not to pay them, I'd go file a complaint with the local Bar Association.  If the charges were not in there, I'd reach out to your title insurance company and see if the policy would cover the oversight.