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Updated over 7 years ago on . Most recent reply
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Seller sued title company for tax $$. Company wants me to pay.
Hi Everyone
I'm looking for some advice on what I need to do regarding this issue:
I bought a rental property on August 7, 2017. Today I received a call from my title company stating that the sellers hired an attorney because they felt that the property tax prorations were not calculated correctly. The attorney calculated that they were shorted $1346.60 and sent a letter to the Title company. The title company wrote a check to the sellers and then called me and said that I need to send them a check for that amount.
They sent me the letter from the seller's attorney as proof. I don't feel that I should just blindly write them a check based upon what the seller's attorney said they were shorted. I have no idea if this calculation is correct. Should I be taking this to my attorney and have them deal with the title company?
Anyone ever had this happen? What would you do?
Most Popular Reply
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easy...first calculate the daily tax due and then calculate how much tax you owe for the rest of the year..the rest is owed by the seller to you. take tne annual amount, divide by 365..multiply times the number of days you own the property this year--subtract from annual tax bill...the balance is what they owe