Land developing: rollback taxes?

[Kristyn Grimes]

Short and sweet question: why is the SELLER responsible to pay rollback taxes? How do they know if the land will be rezoned?

[Greg Dickerson]

Originally posted by @Kristyn Grimes:

Short and sweet question: why is the SELLER responsible to pay rollback taxes? How do they know if the land will be rezoned?

It's negotiable. Buyer or seller may pay all or part of the tax if the property is rezoned. Generally you do not want to close until you get the rezoning and all of the entitlements, approvals and permits. If you want to close prior to getting approvals you need to estimate the taxes and factor that into the purchase price.