Not Sure What To Do With

[Steve H.]

About 12 years I sold a house to my niece, I owner financed it, I wrote up a homemade contract paper that she would pay it off at 7%, keep insurance, and pay the taxes. It the homemade contract way notarized and file with the city
About 10 years ago I got in trouble with the IRS, they put me on a pay schedule and also took away homemade contract, informing her, that she would pay them the money left on the contract.

THE PROBLEM - every time she gets behind on the taxes, which seems to happen every year. I get threaten by the city to have the property foreclosed and to render a lean judgement against me. This is because the property is still under my name. Does anyone have an idea how I can make her responsible for the county and city taxes?

 

[Zigner]

You will likely need the assistance of an attorney to straighten this out.

 

[justalayman]

As long as you are the owner, you are ultimately liable for the taxes. It’s becsuse you are the legal owner so until you transfer title to another party, you’ll keep getting dunned for the delinquent taxes.

 

[adjusterjack]

Does anyone have an idea how I can make her responsible for the county and city taxes?

She's already responsible. It's in your contract. If she doesn't pay, you pay and sue her for indemnification.

Does your homemade contract have an accelleration clause. An accelleration clause says that any default causes the loan balance to be called in and payable in full. If you have it, you can demand the full balance and cancel the contract if she doesn't cure the default.

If you don't have an accelleration clause all you can do is sue her for the taxes she doesn't pay.

 

[HRZ]

Something is missing in your fact pattern...IF you sold niece the property and merely held the financing then the new owner should be reflected on the records ?

And in general, liability for real estate taxes runs with the land not the owner ...but you may have a contract for deed .

Depending on your contract and state law as to contracts for deed, if the buyer breaks a covenant you may have right to recover the property itself as well as right to accelerate payments ( apparently payable to IRS)