Posted by Jackie in Dallas on December 06, 1998 at 22:54:04:
I’ve ran into a problem with the taxing authority “coming after” people claiming a homestead when they didn’t occupy the property TWO times in the last 6 months. So IT DOES HAPPEN!
The most recent incident happened a few months ago I was purchasing a rehab and the title company found out that the seller had been leasing the property for 2 1/2 years. They pulled her name up on the tax records and she had 2 houses with homestead exemptions. This resulted in approximately $2500 in back taxes, penalties and interest that had to be paid at closing. The seller refused to pay it - I didn’t want to pay it …
Sure, maybe the title company will never find out and maybe the taxing authority will never find out (it’s kinda like your plan for not turning on the water)But the point is that the property is no longer occupied by the seller thus the homestead is considered void by the taxing authority - and IF they DO find out - SOMEBODY will have to pay the back taxes when the property actually sells - whether the buyer refinances or exercises their option. I just want to CMA so I don’t have to be that somebody.