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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] You just pay what you have actually agreed to pay.. Posted by Ward-CA- on June 11, 2003 at 5:57 PM In Reply to: I must pay previous owner's delinquent property taxes? posted by frank on June 11, 2003 at 11:53 AM : We bought a house in California... : Previous owner's Delinquent taxes were shown in the preliminary title report; however, I am not sure if the language used in the closing docs indicates if I have clear title to the property? I copied the pottom portion of the "Instructions to Escrow" form, first page, which are the instructions that the escrow officer needs to follow to complete the signing of the closing documents. I've found only one reference regarding the priliminary title report (which lists the previous owner's delinquent taxes), but no direct reference to the taxes, nor any amounts. : To this end, can someone help me decipher this statement in the closing documents, to determine who needs to pay these delinquent property taxes, or if the escrow co. made a mistake in not deducting the amount from the seller's proceeds? here it is exactly as it appears on the "instructions to escrow" : : *************************************** : "PRIOR TO FUNDING WE WILL OBTAIN: : [ ] Final compliance Inspection report. Notify this office when work is completed. : ALTA POLICY must contain Endorsements 100, 116, 8.1, and : 8.1, 100, 116, 103.5 with liability in the amount of our loan on : property described herein. : LIABILITY SUBJECT ONLY TO: (Gen and Spec. taxes) Fiscal : Year 2-03 FIRST HALF PAID : Funds may be used for account of the vestees, and you will : record all instruments when you comply with the following: : 1. Issue said form of Policy showing title vested as shown : below. : 2. Issue said form of Policy free from encumberances : except items 1, 3, 4, 5, 6, 7, 8 of preliminary Title Report : dated XX/XX/2002 : FHA OR VA: BUYER CANNOT BE CHARGED FOR ANY : ENDORSEMENTS TO ALTA POLICIES" : ********************************************* : By the way, item numbers 1,3,5,4,5,6,7,8 referenced above refer to items such as water rights, claims or title to water, and easements affecting a portion of the land, etc. Notice number "2" is missing, which is a reference to the previous owner's delinquent property taxes (2000-2001). : "9" and above, which are also missing, refers to the seller's mortgage loans, etc. : Thanks in advance! =?=?=?=?=?=?=?=?=?=?= Frank, I would go directly to your county tax collector?s office and verify first hand the status of what real property taxes are owing and for which time periods for the subject property. Normally escrow will prorate the real property taxes such that the seller?s account will be debited for any past due taxes and any current taxes and any prepaid taxes up to the closing date of escrow. If that?s the case with your transaction then ask the escrow officer if that?s her understanding also. Hope this helps. Follow Ups: Re: You just pay what you have actually agreed to pay.. frank 1:33 PM, 06/12/03 (1) Glad to hear the good news.. Ward-CA- 4:24 PM, 06/12/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : We bought a house in California... : : Previous owner's Delinquent taxes were shown in the preliminary title report; however, I am not sure if the language used in the closing docs indicates if I have clear title to the property? I copied the pottom portion of the "Instructions to Escrow" form, first page, which are the instructions that the escrow officer needs to follow to complete the signing of the closing documents. I've found only one reference regarding the priliminary title report (which lists the previous owner's delinquent taxes), but no direct reference to the taxes, nor any amounts. : : To this end, can someone help me decipher this statement in the closing documents, to determine who needs to pay these delinquent property taxes, or if the escrow co. made a mistake in not deducting the amount from the seller's proceeds? here it is exactly as it appears on the "instructions to escrow" : : : *************************************** : : "PRIOR TO FUNDING WE WILL OBTAIN: : : [ ] Final compliance Inspection report. Notify this office when work is completed. : : ALTA POLICY must contain Endorsements 100, 116, 8.1, and : : 8.1, 100, 116, 103.5 with liability in the amount of our loan on : : property described herein. : : LIABILITY SUBJECT ONLY TO: (Gen and Spec. taxes) Fiscal : : Year 2-03 FIRST HALF PAID : : Funds may be used for account of the vestees, and you will : : record all instruments when you comply with the following: : : 1. Issue said form of Policy showing title vested as shown : : below. : : 2. Issue said form of Policy free from encumberances : : except items 1, 3, 4, 5, 6, 7, 8 of preliminary Title Report : : dated XX/XX/2002 : : FHA OR VA: BUYER CANNOT BE CHARGED FOR ANY : : ENDORSEMENTS TO ALTA POLICIES" : : ********************************************* : : By the way, item numbers 1,3,5,4,5,6,7,8 referenced above refer to items such as water rights, claims or title to water, and easements affecting a portion of the land, etc. Notice number "2" is missing, which is a reference to the previous owner's delinquent property taxes (2000-2001). : : "9" and above, which are also missing, refers to the seller's mortgage loans, etc. : : Thanks in advance! : =?=?=?=?=?=?=?=?=?=?= : Frank, : I would go directly to your county tax collector?s office and verify first hand the status of what real property taxes are owing and for which time periods for the subject property. : Normally escrow will prorate the real property taxes such that the seller?s account will be debited for any past due taxes and any current taxes and any prepaid taxes up to the closing date of escrow. If that?s the case with your transaction then ask the escrow officer if that?s her understanding also. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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