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Buying or Selling a Home/Land Contract and property taxes

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Expert: - 9/1/2007


Question
Diann- If I buy a property on a land contract is the property reassessed as far as property taxes are concerned? or do I just pay the seller's current tax rate.  I am hoping that since title doesn't change until the contract is paid (I only have equitable title right?)that the assessor will not reassess.  I need to keep my expenses as low as possible during the term of the land contract and am hopeful that I pay the seller's rate which is much much lower than it would be if it was reassessed.  Thanks in advance for your help!

Gary

Answer
Hi Gary,

Unfortunately I can't answer this question for sure as I don't know where you live, and your local tax laws will apply. In Nevada, where I am located, unless the title transfers, taxes are only reassessed every five years. A land contract would not normally trigger a new assessment here.

Try going to Google and typing in your county and state's name followed by tax assessor. Hopefully there you can find out under what conditions properties are reassessed in your area.

Also, be very careful on the land contract! Make sure it is recorded against the property even if that DOES trigger a new tax assessment! If the land contract is not recorded against the property, the seller could place a new mortgage against it which might jeopardize your equity position. Or a mechanic's lien or IRS tax lien could also be filed against the seller and recorded on the property. Have someone helping you who knows all the ramifications of a land contract in your area.

Good luck!

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Diann Tonnesen

Expertise

I have over 25 years of experience in real estate in Las Vegas. I can answer almost any specific question about buying or selling homes, condos, high rise properties or land in the State of Nevada as well as general real estate questions that pertain to the industry as a whole. I can also answer questions related to financing on FHA and VA loans, conventional loans, interest only loans, stated income loans, and hard money lending. You can also go to my site at http://www.greatlasvegashomes.com which has lots of information on it as well.

Experience

With my husband I have been helping families call Las Vegas home for over 23 years and I still love it! We developed a strong niche in the Internet industry and had to start a team of agents to respond to the large volume of calls we were getting. Currently we have 18 full time agents, a sales manager, two leads managers and two transaction coordinators assisting us. Last year we helped over 280 families and investors find property in Las Vegas.

Organizations
Las Vegas Board of Realtors and the National Association of Realtors

Publications
PR Web, Las Vegas Review Journal, and interviewed for numerous magazines as well as a broadcast interview for television by CNN.

Education/Credentials
college journalism major

Awards and Honors
Top agent in the state of Nevada for sales multiple years when working for Century 21 and last year one of the top 10 agents in the country with Prudential.

Past/Present Clients
Just too many great clients to mention here, but I can certainly provide a long list of references on request. Or check out our web sites at:

Las Vegas Real Estate
Las Vegas Condos
Henderson Real Estate
Las Vegas Golf Course Homes

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