Originally posted by Ned Carey:
As already stated usually the bills are paid by the seller. Most contracts say that you get free and clear title so the bills come out of the price you offer and the bills are the seller s responsibility (actually usually paid by the title company at settlement)
However depending on the situation especially if the seller is very motivated and doesn't even know what he or she owes I will give them a net offer. "Mr seller you get 20K net" and I pay all the bills. This is subject to me negotiating the bills to something that works for me. - Ned
@Ned Carey this question came up because owner is really motivated and just wants out of the property, but still has loan balance on it. Seller will be happy even if $1000 will be left for them. But I was trying to figure out how to do it properly. Either I offer what is on the loan balance, just to pay their loan off, and then cover their bills and just give owner 1k check, or I calculate purhcase price where it will be enought to pay bills, pay taxes owed, pay excise tax, title fees and will have 1k left to owner.