Complicated property tax after sale is complete

[Kjchamblin]

What is the name of your state (only U.S. law)? Texas
My parents died almost a year apart. We went through probate in a timely manner informing the county of their passing. My sister, brother and I then sold my parents' house a year and 6 months after our mother passed. Assuming all things were in order at closing, we paid the taxes that were stated as due per the Title Company. That was Feb. 2017. This is now April 2018 and we received an email from the Title Company April 10 stating that we owe almost $7,000 to the Title Company in back taxes including penalties and interest. This is because the homestead and over 65 exemptions were not dropped off of the tax roll at the time of our mother's death. So the Title Company says we now owe the back taxes from Aug 2016 to now with penalties and interest. Do we have any recourse?
The tax bill is in the new owner's name not ours or our parents. The new owner and the Title Company have had this information since Nov of 2017 and have just now decided to tell us about it. The penalties and interest were being accrued before we even knew about this bill. What would happen if we only paid the tax bill and not the penalties and interest? Thank you in advance.

 

[HRZ]

Did the executor sell the home out of estate or did executor deliver title to children and children then sold it as thier own .

 

[Kjchamblin]

Did the executor sell the home out of estate or did executor deliver title to children and children then sold it as thier own .

The executor was my sister. She signed the closing papers as executor, the property was still in both of my parents' names. We did not sell it as our own.

 

[HRZ]

THe executor and counsel for the estate may want to sort out the TX specific issues of just who is held responsible for real estate taxes ... TX. has its own state specific issues ...and liability seems to run with the owners with some very clear date lines. (In my state it runs with the land except for one county where owners are personally liable ...TX is different...you must address the TX specifics )

In addition, state law most likely provides for a time line closure of estate as to debts of estate, especially debts not presented to estate on a timely bass If proper notices were published.

At least as a layman I don't follow where benificaries are liable for debts of the estate if the debts were n fact timely presented to estate at all.

 

[Kjchamblin]

THe executor and counsel for the estate may want to sort out the TX specific issues of just who is held responsible for real estate taxes ... TX. has its own state specific issues ...and liability seems to run with the owners with some very clear date lines. (In my state it runs with the land except for one county where owners are personally liable ...TX is different...you must address the TX specifics )

In addition, state law most likely provides for a time line closure of estate as to debts of estate, especially debts not presented to estate on a timely bass If proper notices were published.

At least as a layman I don't follow where benificaries are liable for debts of the estate if the debts were n fact timely presented to estate at all.

Thank you I will check into this

 

[HRZ]

It should be the executors homework to do?

 

[HRZ]

It's possible if executor destributed proceeds and ignored payment of an approved claim, the benificarys owe it back ..but that's not what you posted.

It possible that if executor failed to take proper steps to publish notices and close the estate, a seemingly late bill may not be too late to present to estate.

why is executor not sorting this out ?

 

[william10]

Real state law provides for a timeline closure of estate especially debts not presented to real estate on a timely bass If proper notices were published.

 

[quincy]

Real state law provides for a timeline closure of estate especially debts not presented to real estate on a timely bass If proper notices were published.

Huh?

 

[MuDoggie1]

What is the name of your state (only U.S. law)? Texas
My parents died almost a year apart. We went through probate in a timely manner informing the county of their passing. My sister, brother and I then sold my parents' house a year and 6 months after our mother passed. Assuming all things were in order at closing, we paid the taxes that were stated as due per the Title Company. That was Feb. 2017. This is now April 2018 and we received an email from the Title Company April 10 stating that we owe almost $7,000 to the Title Company in back taxes including penalties and interest. This is because the homestead and over 65 exemptions were not dropped off of the tax roll at the time of our mother's death. So the Title Company says we now owe the back taxes from Aug 2016 to now with penalties and interest. Do we have any recourse?
The tax bill is in the new owner's name not ours or our parents. The new owner and the Title Company have had this information since Nov of 2017 and have just now decided to tell us about it. The penalties and interest were being accrued before we even knew about this bill. What would happen if we only paid the tax bill and not the penalties and interest? Thank you in advance.

Was the sale of the home handled by a Real Estate Attorney or other professional? Was full title search done by the buyer's agent prior to the sale? Is this the same company that is telling you now that you owe back taxes? Did anyone representing the sellers side indicate taxes were paid when they really were not?

This sounds like an uninformed buyer expecting to retain the same tax obligation as your parents. Taxes probably went WAY up when the new owner's tax was calculated on the current value. If the buyer has an escrowed mortgage, the taxes were likely paid by the bank when due on November. Escrow analysis was probably done recently. I suspect new buyer was unpleasantly surprised when his mortgage payment suddenly went up to cover a shortfall.

If there really were outstanding taxes due on the day of the sale, a title search should have disclosed. You should be able to contact the county or even look online to see when the taxes increased. Your situation seems off. You may consider a consult with a real estate attorney. Not the one that closed the loan or has any affiliation with the title company.

 

[HRZ]

I simply don't know if estate is entitled to tax abatement held by mom. As homestead and 65 + but I suspect it's not a rare question in TX ...look it up then address who was supposed to get it right if that was a required step.

IT seems odd that a prudent title search would miss such a tax point IF there is such a point in TX.

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas
My parents died almost a year apart. We went through probate in a timely manner informing the county of their passing. My sister, brother and I then sold my parents' house a year and 6 months after our mother passed. Assuming all things were in order at closing, we paid the taxes that were stated as due per the Title Company. That was Feb. 2017. This is now April 2018 and we received an email from the Title Company April 10 stating that we owe almost $7,000 to the Title Company in back taxes including penalties and interest. This is because the homestead and over 65 exemptions were not dropped off of the tax roll at the time of our mother's death. So the Title Company says we now owe the back taxes from Aug 2016 to now with penalties and interest. Do we have any recourse?
The tax bill is in the new owner's name not ours or our parents. The new owner and the Title Company have had this information since Nov of 2017 and have just now decided to tell us about it. The penalties and interest were being accrued before we even knew about this bill. What would happen if we only paid the tax bill and not the penalties and interest? Thank you in advance.

I do not think that you owe the taxes...or at least not from February 2017 to now. The new owners clearly owned the house beginning February 2017. You might owe any excess tax from August 2016 to February 2017...however even that is really iffy depending on how the tax system works in your state.