Purchasing Duplex with Past Due Taxes

[Tom Lipps]

Hi BP!,

I'm buying my first duplex and am learning a lot as I go (despite all my prior research)! This particular property is a Short Sale in Cincinnati, OH and has about $2k (1 years' worth) of past due taxes on it.

My contract with the Seller reads, "At closing, Seller shall pay or credit on the purchase price (a.) all real estate taxes and essments, including penalties and interest, which became due and payable prior to closing...."

Seems pretty black and white to me that the Seller has to pay for these past due taxes... but any advice to ensure the seller follows through? Is this something I should be worried about? Or is it standard procedure and something that will be handled at closing?

On a simliar note, the current owner is MIA as far as I can tell, which has made the Short Sale drag on for some time... The current tenants did pay her a Security Deposit of $600 and last month's rent of $600.  Again my questions is, should I be concerned about the current landloard transferring these funds to me? If so, any advice that will help me ensure she transfers me these funds?

Can't thank you all enough for the feedback. It's helped me sleep much better at night!

Regards,

- Tom

[Wayne Brooks]

The preliminary closing statement (formerly a HUD 1) that had to be submitted to the bank for approval will detail that. Look at that, and if they haven't done/submitted one yet someone is dropping the ball. You can usually forget any deposits being transferred to you.....the seller is claiming they have no money, and the bank won't pay it. Again, look at the prelim closing statement, if the tenant is getting any relo money, that should cover it.