How can I compel a person who sold me a home to pay her portion of property taxes incurred when she owned the home?

My wife and I closed on a used home in September of 2008. The house had never been on the tax rolls until we bought it. The previous owner lived in the home for the first 8 months of 2008, and now she refuses to pay any portion of 2008 taxes. The county of course has has billed us, the current owners, for the entire amount of 2008 taxes. Is there anything we can do to force her to pay her share of 2008 taxes? - Is this your question? Add additional information
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Answers (2)

Henry Repay

Henry Repay

Contributor Level 6
You should begin by looking at the real estate contract to determine how the taxes were to be handled. Usually, the seller credits the buyer at closing, meaning the buyer then has the funds to pay the sellers portion of the taxes. Often the credit is final, meaning the seller takes the risk that too much was credited and the buyer takes the risk that not enough was credited. Some contracts provide for recalculation upon issuance of the tax bill. Some contracts deal separately with handling a situation such as yours where the property had not been taxed in the past. Your closing attorney should have considered whether the contract provisions were adequate and protected you at closing to make sure the provisions were implemented. Check your closing statement to see if you received a credit. You should call your closing attorney to review what happened.

If it turns out this was not addressed, you may have a difficult time collecting. Generally, without language to the contrary, the contract becomes irrelevant by virtue of the deed superceding it (the contract merges into the deed). So, if it was overlooked at the time, there may be a problem.

If the amount is worth the cost and your closing attorney is not able or willing to assist you, you should consult another attorney to review all the documents and consult with you about your options.
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Mazyar Malek Hedayat

Mazyar Malek Hedayat

Contributor Level 5
Your quesiton is whether you can compel the former owner of your home to pay the portion of property taxes incurred while they lived there (i.e. before you moved in). The short answer is 'Yes,' but it promises to be a challenge.

First, this issue should have been addressed at the closing. In Illinois and many other States real estate taxes are assessed in arrears, so it is customary to prorate property taxes for the year before a property is purchased. That proration appears as a credit to the buyer at closing to offset the seller's portion of the tax liability. I cannot tell from your description whether a proration was given in your case and, if so, whether it was adequate. If not, then it may be necessary to re-approach the seller. That will be hard because once a transaction is over the parties generally do not expect to pay any more.

To begin with, talk to the lawyer that closed this transaction on your behalf. If that is not helpful then speak with an attorney in your area that handles both real estate and litigation matters, as this matter touches on both.

I hope this information has been helpful. Good luck in your future endeavors.
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