How I Almost Got Cheated out of 650 bucks

So as you all may know we recently purchased our 3 rental property. I did a lot of talking about in the following posts.

We Have Officially Purchased Rental Property #3

Rental Property #3 Numbers Analysis

 

Outrageous Taxes!

 

Before I get into the story, I would like to say thank goodness for lawyers.

Every July the city in which we invest in send their tax statements. The July taxes are brutal they cover city and school taxes.

I personally think the taxes are way too high, for the cost of the homes.

We are talking about 5-10% of the homes value. This is a ridiculous amount to pay in taxes! The crazy part is… That’s not all of the taxes! We still have to pay school taxes later in the year.

 

Only Received 2 of 3 Tax bills!

 

The mail came one day and I noticed I have two tax bills from the city. I think.. “great, time to get fleeced”

But, something is missing. The tax bill from our recently acquired property wasn’t sent to us.

Hmm… that’s odd. Let me look it up online.


Low and behold, since we closed in late May the cities records didn’t have enough time to get updated to change the owners name on the tax bills.


 

No biggie.. but wait.. what the hell..

 

The tax bill is showing fees/fines of about 650 bucks.. umm WTF!!!

I dig deeper and see that the old owner had a back due water bill of 500 bucks and was hit with a case management fine.

I instantly call the Lawyer up who says..”oh wow they should have handled that at closing, they received all the money.”

So, as of right now I have my Lawyer figuring this all out. The sucky part is the 1st installment of the tax bill is due July 31st.

I really hope this all gets figured out before then, I’m sure if I don’t pay the installment (which is inflated by 650 bucks) by July 31st I will be hit with more fines.

 

Moral of the story

 

When you are buying properties, especially in cash, make sure the prior owner promptly pays in fines, citations, or fees.

Never blindly pay a bill without analyzing it. If you do not understand something call someone to explain it.

 

Sigh.. I hope this gets worked out sooner rather than later.

Comments

  1. Wow, it's good you caught that! I hope you get it sorted quickly.

  2. That's insane! I haven't thought that things like this could happen. Thanks for sharing your experiences, it will be helpful to avoid a situation like that.
    My recent post Ice Age 4: Voll verschoben

    • URFinanceSimple says:

      This is the very first time this has happened to me, I was shocked to find that I was being held responsible for the past bills of the previous owner. Only thing I can do now going forward is demand payment prior to closing.On Thu, Jul 19, 2012 at 1:14 PM, YFS <yourfinancessimplified@gmail.com> wrote: approve

  3. Did your attorney advise/suggest you go ahead and pay the $650 if he can't work it out by the payment deadline?

    Will you pay it to avoid the fines/penalties and try to recoup it from the previous owner?
    My recent post Financial Conflict Coach Show #7 – That’s Not FAIR!

    • URFinanceSimple says:

      My attorney is working it now and is not advising me to pay yet. She has contacted the sellers attorney and they have documentation of enough money being set aside during the closing, but not clue on why the water bill was't paid.Since the taxes aren't due until July 31st, I will probably wait until the last day to pay the taxes. I will then peruse the landlord legally to recoup any additional money.

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