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Real Estate Tax nightmare

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Polk

Junior Member
What is the name of your state (only U.S. law)? Indiana
My Mother-in-law purchased a new construciton home in Dec. 2006. This was a cash deal and the builders has a mortgage company who did all the title work. They filed the deed and it was Recorded, but supposbly did not "transfer" the property, therefore, the Auditor's office did not have the property listed to her. The deed cannot be recorded before it is transfered, so this is an error on the Recorder's office. In Dec. of 2006, she filed for a homestead exemption. Now they are telling her this is no good and did not matter. Because of the Assessor Dept. delay in getting out the tax bills for 2007 the error was not noticed till the end of Dec. 2008 and the tax bill went to the builder's address. In addtion, and my mother-in-law was not given the homestread exemption. She has also been told by the Auditor's office that she cannot have it and will also not get it next year since the property still had not been transfered and she is too late to file a homestead exemption for 2008.

What is her best recourse. She has an appointment with the Auditor, but he has already stated to the builder that he will not correct the error and refigure her taxes. I am trying to get her to do the appeal process through the tax courts (Form 133). She has tried a couple of attorneys, but so far no help there. Should she sue the builder for not filing proper paperwork? This error will cost her about 4,000.00 over the next 2 years.
 


FlyingRon

Senior Member
Did she purchase title insurance?
I'd hit up the mortgage company or whoever did the closing and inquire as to why they failed to properly handle the closing.
 

Polk

Junior Member
I am sure she didn't. And she may have signed a disclaimer or some type of document not holding them "responsible" for errors.

I guess I am confused on how a deed can be recorded and an exemptioned filed for, but the Auditor's office will not honor either.

Would the Builder be responsible for the taxes since they are still in the builder's Company name?
 

FlyingRon

Senior Member
It's possible, but that's not the outcome she wants. She needs to go back to the escrow company and figure out what they screwed up.
 

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