Posted by Diane (TX) on July 15, 2003 at 20:43:32:
You could contact your local tax assessor and calculate the pro-rated tax due based on your sales price. That should be a pretty solid (maybe high)number. Request that the seller pay this amount at closing, and insert a clause that YOU will true up the amount after final taxes have been assessed. If the sellers have a problem with this approach, at least it’s a starting point for negotiation.
Yes, you could have the clause your realtor suggests, but if they don’t pay, you’d have to sue. It could get messy with being in another state and probably wouldn’t be worth it.
I am ready to purchase a new home that is only a year old. Property taxes have not been assessed, and the seller does not want to pay a lump sum (for the past year) at closing. Our realtor advised us to add an addendum to the contract stating seller will pay all taxes up to date of closing. The sellers are relocating to a new state and new jobs. A friend stated that if they file for bankruptcy the addendum would be non enforcable. Are we setting ourselves up for trouble? What if the seller refuse to pay? Please provide some advice and help.