I purchased a property at the end of 2018 that had an over 65 exemption. I just received a letter from HCAD that this should not have been in place since the person died in 2017. The respective entities are now charging me for the non-exempt taxes for 2018. Is this an issue for my title company or do I need to go back to the seller?

Pretty sure that is the seller obligation. Go read your contract and see what it says. I think there is a provision in it

SteveBott said:

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Pretty sure that is the seller obligation. Go read your contract and see what it says. I think there is a provision in it

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This is true, but it's odd that the title company didn't pick up on this and ask for the rollback from the CAD. They certainly would have found the death in their title search.

My parents had a similar issue in Dallas. After going through the song and dance alleging that my parents knew of the error and failed to disclose to the title company, their underwriter took care of it. It took quite awhile.

It does not surprise me. Title is not always perfect

I contacted the Title company and yes, it's between me and the seller. I had my realtor contact them, but I'm not hopeful. Has anyone gone through this?

To be fair to title they cannot play 'what if' and collect taxes that have not been accessed. Right now all closings are using 2018 taxes since 19 are not final

I'm not making a claim against title. It's in our contract on top of an additional form we signed at closing that says me and the seller would settle any differences in taxes if they come up. I'm asking if anyone has gone through with going back to the seller to ask for property tax adjustments. I'm thinking they'll just ignore the request. Would I then take them to small claims court?

I had a similar issue shortly after purchasing my condo, where I got a notice that the CAD was removing half of the over 65/homestead on the property going back for the 5 previous years. (It was owned by lady who had passed, and her son was also listed as owner on the deed from the beginning I guess, so after the transaction I guess they realized this and changed it from 100% homestead to 50% since one of the owner's had never lived there going back 5 years (maxiumum for a correction).

I sent the bills to the title company and I guess the guy agreed to pay it.

I dont think your issue is quite the same as mine though, your issue is solely going to be about the apportionment of the 2018 tax agreed to in the contract (whether they paid enough at closing since the estimate was wrong), whereas mine included years where I wasnt the owner in any way shape or form.

I am an accountant, not attorney. My client is executor for decedent who had over 65 exemption. She died in March of this year. House is selling next week. Title co wants buyer and seller to agree which way taxes will be prorated. Based on 2018 over 65 its 1,500, based on no exemption its 3,000. Seller wants to prorate based on 1,500 and buyer wants 3,000

Title co suggested diff be put into escrow and will be distributed to either buyer/seller based on whether Williamson County comes back with tax addition. Escrow fee is $110

It seems to me over 65 exemption lasted till March so some extra math should be involved if county does come back with additional assessment.

I asked title co if Williamson county has ever come back for additional assessment in this situation.

Title co said 2 times in 2018 of all the closings she handled.

Taxing jurisdictions are digging for money anywhere they can find it

All that should matter is what was the situation on January 1. If she was alive 1/1/19, the tax paid for this year should include the over 65.

The previous owner is not responding, surprise. Is it possible to take them to small claims court? Would I sue the estate (all been probated) or is it possible to go after the heirs?

I'm no lawyer but I sure don't like you position. Suing dead folks and estates sure does seem an upward battle

This is exactly why we pay outrageous title insurance fees. The title company should be taking care of it.

Title won't be liable at all

how much are we talking about ? $500 or $5k?
Your realtor , bank, or closing agent "could" have noticed this, but then again so could have you.
Ultimately I think it's your responsibility to work it out with the prior owners.

I'll remember this if I ever buy a home from someone over 65, so thanks

ByrdEWhiteTrash said:

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Taxing jurisdictions are digging for money anywhere they can find it

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Agree with the former, disagree with the latter.

Taxing jurisdictions are digging for money hard against homeowners. The pool of homeowners that lack the know-how or funding to fight the CAD is a target rich environment. Most homeowners don't see themselves as landowners and react differently than many owners of larger tracts to challenges to their control.

If the taxing entities/CADs really wanted to make some hay they'd be going after bad ag exemptions in a big way. I've seen a lot of property in the survey business that has an exemption but obviously shouldn't. I've not seen a lot of those going away.

aggiepaintrain said:

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how much are we talking about ? $500 or $5k?
Your realtor , bank, or closing agent "could" have noticed this, but then again so could have you.
Ultimately I think it's your responsibility to work it out with the prior owners.

I'll remember this if I ever buy a home from someone over 65, so thanks

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Two bills for $3700 total.

Dr. Venkman said:

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I purchased a property at the end of 2018 that had an over 65 exemption. I just received a letter from HCAD that this should not have been in place since the person died in 2017. The respective entities are now charging me for the non-exempt taxes for 2018. Is this an issue for my title company or do I need to go back to the seller?

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This would be a great issue to take up with your state senator and / or state rep. It does not pass the smell test and should be fixed. I thought the title co. Gets a tax certificate from each taxing entity to settle at closing.

In my county, the long time appraisal district chief appraiser retired and became a "tax consultant". Perhaps HCAD has a former employee you could hire to help.

Not sure why the state needs to make new laws or his reps need contacting. This is contract law and well defined in his contract.

The fact he is dealing with a dead persons estate is the problem. It's really hard to get dead people to pay you.

Mas89 said:

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Dr. Venkman said:

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I purchased a property at the end of 2018 that had an over 65 exemption. I just received a letter from HCAD that this should not have been in place since the person died in 2017. The respective entities are now charging me for the non-exempt taxes for 2018. Is this an issue for my title company or do I need to go back to the seller?

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This would be a great issue to take up with your state senator and / or state rep. It does not pass the smell test and should be fixed. I thought the title co. Gets a tax certificate from each taxing entity to settle at closing.

In my county, the long time appraisal district chief appraiser retired and became a "tax consultant". Perhaps HCAD has a former employee you could hire to help.

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Paul Bettencourt is not cheap

SteveBott said:

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Not sure why the state needs to make new laws or his reps need contacting. This is contract law and well defined in his contract.

The fact he is dealing with a dead persons estate is the problem. It's really hard to get dead people to pay you.

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IMO we need laws to protect buyers post closing from cases just like this one. Put the pressure on the taxing entities and appraisal district to find any issues prior to closing or too bad. No post closing recourse on the buyer. Let them go after sellers estate instead of the buyer/property.

I understand the contract law implications but these egg sucking gubment entities have too much power when they go after buyers for fraud committed by the seller/estate.

SteveBott said:

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Not sure why the state needs to make new laws or his reps need contacting. This is contract law and well defined in his contract.

The fact he is dealing with a dead persons estate is the problem. It's really hard to get dead people to pay you.

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This was a $140k rental house in a blue collar neighborhood. I can absorb the cost. Imagine the typical buyer for this neighborhood saving up for their first house. They wouldn't be able to come up with 4 grand on the spot at the threat of an HCAD foreclosure. I think he's right that this is an injustice that needs to be addressed. Not for me, but for people it may affect more seriously.

What if the owner actually died 10 years ago? Would I be on the hook for $40k of back taxes?

Just filed in small claims court. Any tips on actually collecting the money?

Dr. Venkman said:

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Just filed in small claims court. Any tips on actually collecting the money?

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Hopefully they'll settle before court...if not, show up and hope they don't. Get a judgement and hope they settle up after that. If that still doesn't work, send them a 1099c(someone correct me if i'm wrong.) Maybe you'll make them pay taxes on the amount and then you can write it off.

If you get a judgement file it with the county clerk in the county where the defendants live and in the county located. I had a friend do this after a car wreck where the guy claimed he had insurance but did not. Friend got a small claims judgement that the dude laughed at. Years later the dude went to sell his home and had to pay my friends judgement plus interest and penalties.

An attorney helped him file correctly at the county clerks office.

Did the "estate" sell you the house?

Or did the house pass to the heirs and they sold you the house?

dubi said:

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Did the "estate" sell you the house?

Or did the house pass to the heirs and they sold you the house?

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The house was passed to the heirs and they sold me the house, but the contract was with the estate. However, there was a lease back and that lease was also with the estate. But the heirs used their personal checking to pay me the deposit.

I'm reading that the house passed to the heirs immediately upon his death. And with the personal check, I think I can show I really bought the house from the heirs.

Mas89 said:

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If you get a judgement file it with the county clerk in the county where the defendants live and in the county located. I had a friend do this after a car wreck where the guy claimed he had insurance but did not. Friend got a small claims judgement that the dude laughed at. Years later the dude went to sell his home and had to pay my friends judgement plus interest and penalties.

An attorney helped him file correctly at the county clerks office.

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I'll do that, but I was reading you can't put a lien on a person's house. It's exempt. Or at least it's easy to remove it. Regardless, they don't have a house, they're renting now.

I'm reading I can freeze their bank account, right? I'm pretty sure they have a bunch of cash right now unless they already blew the house proceeds.

Dr. Venkman said:

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dubi said:

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Did the "estate" sell you the house?

Or did the house pass to the heirs and they sold you the house?

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The house was passed to the heirs and they sold me the house, but the contract was with the estate. However, there was a lease back and that lease was also with the estate. But the heirs used their personal checking to pay me the deposit.

I'm reading that the house passed to the heirs immediately upon his death. And with the personal check, I think I can show I really bought the house from the heirs.

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If you purchased it from the heirs you have more recourse to recover the money.

Plus if the heirs owned the house, why was the contact with the estate? That oddity needs to be reviewed carefully.

Quote:

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I'll do that, but I was reading you can't put a lien on a person's house. It's exempt. Or at least it's easy to remove it. Regardless, they don't have a house, they're renting now.

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You can't take someone's homestead, but you can recover the funds when they sell it.

It seems like the county should go after the person who owned the property at the time. If one is dead and one owned it for 2 months, it could be prorated for the new owner.

It's amazing to see the way the counties are now gouging the taxpayers. It's shameful, really. Values have gone up nearly $100,000 per home for all levels of homes in the last few years. The counties should be loaded with the growth and increased property values. Their appetite for money is becoming insatiable.

Bear with me here - I'm trying to spell this out in the easiest way I can for my elderly Mom to understand. Y'all are my test audience.

Mom bought a house from another old lady in June of 2019. She had all the exemptions: age & homestead. Taxes were prorated and credited to Mom at closing.

Mom still has her old house (it's nice, roomy & for sale in Bryan if anyone is looking....her agent posts in here regularly) that carries her 2019 homestead & age exemptions.

Got both bills this week - both show owing the totals with exemptions. That's all she has to pay this year, correct?

If the house doesn't sell soon, next year she will owe the prorated rate of the non-exemption total on the old house for the days she owns it. She needs to switch her homestead in January.

Simple enough? She wants to go talk to them about it, but I think she should just pay both bills with all the exemptions & not stir the pot. Agree? Can she mess up something by going down there?

edit to clarify the Schwacks - there are 2 of us. This is not the same parent with the "inheritance issues" - that thread deals my husband Schwack. This is my Mom.

I don't think you can get homestead and senior citizen exemptions on two houses at the same time. I'm not an accountant or attorney, so take it for what it is worth.