Expert: Karyn Foley - 6/26/2008

Question
karyn, i recently bought and closed on a condo, my lawyer made me pay some of the taxes directly to the seller, is it done this way?  also my lawyer also made me pay the sellers attorney fee, is that right?. my property is also suppose to be tax exempt because its a new construction, is this suppose to be included in the contract?

Answer
Dear Questioner:  These are important questions that should have been adedressed to your lawyer, or another independent attorney, in order to be told if this is what was expected.  And, I do not have a copy of your contract with the seller or your written agreement with your attorney, so it is difficult for me to comment.  Real estate brokers cannot give legal advice, so I am only going to say a few words and then ask you to seek further appropriate counsel if you are troubled.  Depending on the state, certain pay offs by the buyer and seller are customary, but should have been fully disclosed to you up front, and a good idea to have had it in writing.  Even if it was customary for your costs, all payments due are negotiable.  Now, the seller is responsible for paying taxes, but they were probably pro-rated, with the seller paying for the portion appropriate for when the seller lived in the condo, and you reimbursing the seller for the portion left after you took over the ownership and would be living in the condo.  Liens, homeowner dues, and so forth, are usually handled in the same manner.  I feel certain that you would get a reasonable response from your attorney if you asked for an explanation.  It can be confusing. Now, the tax exempt confuses me, and certainly deserves looking into.  My husband and I bought a condo in New York City several years ago that was also new construction.  We were given a ten year period when our property taxes were greatly reduced.  So, do your asking now.  And again most of this should have been in writing!!!!!  Everything in real estate needs to be in writing.  I understand how unclear things could be because of the many, many pages of documents involved, but your attorney should have gone over everything with you, and may have, but after a period of time it does get harder to remember all of the details.  I applaud your looking into this, so please get back to me and let me know what you learn.  Karyn Foley