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Question
I loaned my brother the funds to keep his property from going into foreclosure. To secure the loan, I had the Deed put in my name until the loan was paid out, and then I will transfer the Deed back to him. My Question is: If He failed to pay his property taxes while the Deed was in my name, could I be held responsible for any unpaid property taxes? He was informed that he would have to pay his own taxes.
Hey, George.
The short answers is, "Yes, you could be held responsible for any unpaid property taxes."
Whoever owns the property is ultimately responsible for all unpaid taxes. For example, if the home goes into foreclosure and has unpaid taxes, then the mortgage lender is responsible for paying the unpaid taxes. Although it's possible but rarely done, the tax assessor can take the property to pay the unpaid taxes. The reason why it is rarely done is because no one, bank owner or home owner, wants to lose a house that costs hundreds of thousands of dollars over unpaid property taxes of even several thousand dollars.
Generally, you also have a good amount of time to pay taxes, although there are penalties if you are late. So once your brother gets things under control again, you can transfer the Deed back to him, along with the final responsibility to pay his property taxes.
Check with a real estate attorney in your state to see how long you have to pay property taxes. Here in California, property taxes are due on December 10 and February 10. They are delinquent on the first of the following month, which means penalties start accruing, but the tax assessor can't actually take the property until several months (I think it's six) after February 10. So even if one missed the first payment on December 10, as well as the second payment on February 10, as long as one pays them and the penalties by the drop-dead deadline in August or so, then one is okay.
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Russel Ray
Expertise
Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.
Experience
Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.
Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego
Education/Credentials
Graduate of Texas A&M University; College Station, Texas
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