The sale can handle the back taxes

If you owe delinquent property taxes, you may be wondering where that money comes from if you sell.

In many transactions, the seller does not first write a separate check to bring the property taxes current.

Instead, the title and closing process identifies the amounts that must be paid, and applicable amounts can be handled from the transaction proceeds.

A simplified picture looks like:

SALE PRICE → TAXES + PAYOFFS → APPLICABLE REMAINING SELLER PROCEEDS

The title company works through the numbers

After a purchase agreement is signed, the title company reviews the property.

Depending on the property, the closing statement may account for:

  • delinquent property taxes;
  • current taxes or applicable prorations;
  • mortgage payoff;
  • valid liens or judgments;
  • applicable transaction charges; and
  • other title requirements.

Those numbers are assembled before closing so the parties can see how the transaction is being distributed.

The taxes can come out of the sale proceeds

If delinquent property taxes must be paid for the transaction to close, applicable amounts can be paid through closing from the sale proceeds.

That is the key point for a seller who is behind:

You may be able to sell without first coming up with the cash to pay the back taxes yourself.

The exact amounts depend on the property’s tax balance, title, liens, purchase price, and other closing requirements.

What do you receive?

After the required amounts are accounted for, any applicable remaining seller proceeds are shown on the final closing statement.

For example:

Purchase Price
− Mortgage / Valid Liens, if applicable
− Back Property Taxes
− Applicable Transaction Charges
= Remaining Seller Proceeds

This is why the first useful step is often getting a real offer. Once you know the purchase price, you have a number to compare with what is owed.

You can get the CashAsIs number first

CashAsIs can review the property as-is and make an offer before you pay the delinquent taxes.

You do not need to repair, clean, stage, or prepare the property for showings before we make an offer.

If the offer works for you and you decide to move forward, title can then determine the amounts that need to be handled through closing.

See what the numbers could look like

Send us:

  1. The property address
  2. Any delinquent property-tax statement you have
  3. Any tax-suit, judgment, or sale notice, if applicable

We’ll review the property and let you know what we can offer.

You don’t have to guess whether selling works. Get the purchase number first and see what could remain after the taxes and other required payoffs are handled.

CashAsIs is a property buyer, not a law firm, tax adviser, or tax-relief service. Tax balances, liens, judgments, and closing requirements vary by property. The title company determines the amounts that must be addressed for a particular closing. Consult the appropriate taxing authority or a qualified professional regarding your specific tax or legal situation.