Back Taxes Law Suite Case

[Heron Barrera]

Hello I wanted to see if anyone has heard of this in Texas. I was working on a wholesale deal. I got it under contract however the seller was saying she was talking to another buyer and that they had a better offer. To protect my investment I filed a Memorandum of Standard Purchase and Sale Contract. We needed to renegotiate however the buyer was not willing to renegotiate so the deal fell through and never closed. About over a year later I received a letter regarding this property from the county lawyers for back property taxes. I called them and told them I never purchased the home. I gave them the county tax records and my name was not on anything. They said "Ok, don't worry about it". We will update our records. Then 1 month later I was served with a law suite by the sheriff at my door regarding this property due to back taxes. It was about $9,500 in back taxes. I was lucky during this time the owners PAID the taxes off and they Dropped the case. I wanted to see if anyone who has filed a Memorandum encountered the same problem? And should I go and release the memorandum? Does anyone have a release form that I could use?

[Guy Gimenez]

@Heron Barrera

You should file a release ASAP if your contract is no longer in effect. I know of an agent being sued for $100K because he forgot to file a release. He now has to spend a ton of money on attorney fees because he didn't understand the consequences of encumbering one's title long after his option to purchase had expired.