Title Company Didn't Take Out Property Taxes At Closing..now Want $$$ From ME!
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Not sure if this is the right forum......
In Februsary 2004, we closed on an investment property we sold.
9 months later, we got a call from the title company saying, "We're so sorry, we forgot to take out your taxes from when you owned the propety. Can you come down here and write us a check for $1700.?"
I said, "I don't have that kind of money now."
So then she said the title company was going to pay it on our behalf because it was their mistake and because the tax bill was accruing intrest and penalties.
She said they would take small monthly payments.
I called today to make sure they paid it and they said they did, but wouldn't send me proof that it was paid until I sign a document saying I would send monthly payments.
Is there a way I could get the proof any other way??? And could I file these on my taxes even though they paid them for me???
Thanks for any info!
Just call your county tax collector and see if it has been paid, and buy who. Did your closing documents show that you paid the taxes?
The escrow and/or title company is responsible for all interest and penalties. You only owe the amount of taxes that would have been due from you at the time of the closing, according to the terms of the purchase and sale agreement.
You are entitled to evidence those taxes are paid, because that is satisfying your duty to the purchaser. You are entitled to a revised closing statement showing those taxes and your addtional payment to escrow in that amount that was then due.
If the escrow company asks for more, consult with an attorney.
You can only deduct what you have actually paid. At this point, you have paid nothing. You can deduct the taxes as you repay them to the title insurance company.
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