Property Taxes

[Michelle Sizer]

When you buy a house in auction, who is paying the current year taxes? I purchased a home at auction in October, will I be responsible to pay taxes for the entire year or just prorated starting October

Please Help!!! 

[Kyle J.]

It depends on what type of auction it is and the specific laws in your local jurisdiction/state.  In a traditional sale between a seller and a buyer, the taxes are usually prorated between the two and you (as the buyer) are usually only responsible for the portion of property taxes from the date of sale going forward (unless the purchase agreement specifies something different). 

However, that's not always the case with an auction.  For example, in tax deed auctions in my state (California), the buyer's winning bid will pay the defaulted (past due) property taxes, but the buyer is also responsible to pay the current year's property taxes in full. 

Your best bet is to contact whoever is hosting the auction and/or the taxing authority in your local jurisdiction and ask them.  But ultimately you should plan on paying them to be safe because if your winning bid didn't cover them than someone is going to be responsible for paying them and that someone is likely you as the new owner.