Expert: Hans Weber, Licensed Broker Associate - 7/29/2010

Question
QUESTION: In NY,does the seller of a home have to disclose a substantial assesment increase to a buyer?I recently purchased a home and found out months later that the previous owner had been reassesed during the time the property was on the market.We were not aware of this and received a notice from our lender that there was an escrow shortage due to increase of taxes.The increase was double what we were told at closing.We feel that this is unfair and we should not be held responsible because the seller should have notified us at time of sale that his assesment had doubled.

ANSWER: Hello Kathleen,

Thank you for your question.

there is not quite enough info to answer properly.

Is it a condo or homeowners' association?

Were recent additions made to the house and a certificate of occupancy just issued?

Was the whole town increased in assessment?

The assessment cannot be increased just because the house sold, it could be reduced...

In general if the seller knew they should have disclosed, but maybe they did not know?  

Tell me more.

Hans

---------- FOLLOW-UP ----------

QUESTION: Thank you for your reply.The property is a single family home.It was completely renovated before we purchased it.No additions were added that I know of except for a very small covered front porch.That was the only co that we knew of at time of purchase.My town assessor said that the seller was mailed the new assessment in march and we purchased in July.I know that the assessment is too high because our appraisal was 50,000 less.My main issue is the fact that the seller or his agent never mentioned that the assessment had or was changing.I feel that as a buyer that was extremely purtanant information for the decision of my purchase.I am now short one year's escrow of 5000 and 200 more a month in my mortgage payment.Shouldn't someone be held resposible?I hope this is enough information.

Answer
HI Kathleen,
Thank you for the follow up.
This helps.  
Did you ask the assessor why they increased the assessment?  They cannot change an assessment just for one house unless changes were made to that specific house.  It could be they reassessed for the porch?  Permits filed for renovations may also trigger reassessment.
In any case, go to the assessor's office and grieve your assessment as being too high.  Since your appraisal and probably purchase price are lower than the new assessed value.  That would get the taxes lowered.  They have to reassess to proven market value.
If the seller and the agent knew of the assessment change they should have made note of it in the listing information.  
Even so, someone on your side should have checked the town records for correctness.
Hope this helps.
Hans