Join Date: Oct 2009
Location: Swarthmore, PA
Thanked 96 Times in 85 Posts
Rep Power: 8
Re: Previous owner wants property tax credit?
This guy screwed up and forgot to put this in the contract. So you would appear to be under no obligation to pay.
EXCEPT FOR ONE PROBLEM: If he fails to pay, the taxing jurisdiction will put a LIEN ON YOUR BOAT.
In my state, the taxes are prorated for all real estate transactions. And IIRC it is not covered in the purchase contract, it is covered in the FHA good faith settlement agreement because it is a standard practice that everyone follows. So if this transaction was a house, you'd be on the hook for almost all the tax since the taxing year starts July 1. Under that scenario, his offer of a 50-50 split is still a good deal for you.
So contractually you would not appear to be on the hook (though I'm not a lawyer). But given the crap you'll need to go through having a lien placed on YOUR boat if HE doesn't pay, I'd take him up on the 50-50 split, and personally go with him in person to make sure he pays the bill instead of just pocketing your money. Try to write your check directly to the taxing authority (not to him), and see if there is some way to get them to give you a receipt for your part, so you can take a tax deduction (if one is actually available for your tax situation).
FWIW, this is one of those things that a broker should know to take care of, and how he earns his commission.
Also, don't forget about that thing called karma. It does have a way of coming back to bite you later.
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
2001 Catalina 34MkII Breakin' Away (at Rock Hall Landing Marina)
PO of 1998 Catalina 250WK Take Five (new owners relocated to Baltimore's Inner Harbor)
1991 15' Trophy (Lake Wallenpaupack)
1985 14' Phantom (Lake Wallenpaupack)
Last edited by TakeFive; 08-15-2013 at 08:20 AM.