Title company did not catch that I prepaid taxes?

Question

I am selling a place in Arizona for which I had prepaid taxes for the current year. The title company did not see that the money was being held in the treasurers office account ( they haven't applied it towards the current tax year yet ), so it was not reflected on the closing documents.

After I pointed it out to the title company, they recommended that I just request the refund from the county which will take up to two months. I feel that this should be corrected before closing as I don't want to be dealing with the state treasurer to get the money back. Which would you all recommend?

Account Closed · Answer

Good to know.  So what are my options at this point?

Account Closed · Answer

Account Closed You say "selling" so, it depends on what stage escrow is at. If you are simply reviewing the HUD before closing, which is what you should be doing, then have them create a new HUD. If they won't do what is right, tell them you are paying for completeness and accuracy &  just tell them you will announce on BP what their business practices are. I am sure they will reconsider.

If funds have already been disbursed, that is a different story. It should have been caught when you reviewed the HUD before closing. You have to decide if it is worth the added headache for you to convince them to reverse the entire transaction and get everybody that was involved to agree. Unless you have a lot of time on your hands and a high degree of stress management, it is the hard road to take. If this is the situation, I'd put in for my refund.

Account Closed · Answer

I have signed the closing paperwork but the funds will be disbursed the day after tomorrow so there's one more day to correct the documents. I would frankly prefer to have this taken care of right now rather than deal with that later.

Greg H. · Answer

Title Companies order a Tax Certification which would indicate property taxes due and past due along with the total taxes due for the last collection cycle.  Prepaid taxes held by the taxing authority would not be part of the search therefore not be caught by the title company