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Updated over 7 years ago,
Buying from a wholesaler- contract & fines/taxes
Evaluating a deal from a local wholesaler I need opinions and any experience on this type of situation with back taxes and accruing fines is much appreciated!
1 acre property with 1930 condemned home with asbestos siding. Required to be demolished before county will stop adding to fines ($250/day) currently at $7250. Demo estimate is $8-10k, back taxes due are $4k. Asking $27k. Raw land value is $50-55k
Plan is to use as primary residence in future.
Main issues are:
1. the wholesaler is stating that the current owner will be paying the taxes and code violation fines. How would this work in a contract if they haven't paid to date why would they pay after closing?
Can I have them transfer funds to me at closing in the estimated amount?
2. I've asked for a copy of the contract they have with the seller, they are wanting to do a double closing and I want to make sure I'm covering all my bases. Am I better to offer lower price and then be responsible for the fines and taxes being paid by me? Or offering a higher price with a clause that they somehow will guarantee payment of fines and taxes?
Thanks everyone in advance!!
Chantel