Real Estate Agent · Philadelphia, PA · Member since 2013 · 310 posts · 34 votes
Considering buying a property but when doing my due diligence I found that the property owes $7k in taxes what should I do if it’s a good deal. Haven’t seen the house in person yet. But ran the number and it’s beats the 2% rule.
Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
7y
The seller should pay the taxes at closing and then you adjust for the number of days you'll own the property. That's standard. Any buyer will require the same thing, so if they say no, that's not terribly smart on their part. Worst case scenario is you factor in the $7,000 to your budget and see if it's worth you paying them. If it's a good enough deal with a little wiggle room, maybe.
Considering buying a property but when doing my due diligence I found that the property owes $7k in taxes what should I do if it’s a good deal. Haven’t seen the house in person yet. But ran the number and it’s beats the 2% rule.
You should work with a title company, and they will ensure that all the back taxes get paid when they hand you the paperwork. The back taxes should come from the seller's proceeds. If the seller is not netting anything from the sale of the property, he will have to bring the difference to the table.
Don't do the deal outside of the title company, and make sure you get title insurance. Good luck.