A number of years ago, I purchased a condo from the developer. He still owns many units in the building. I was under the impression that my property taxes were escrowed, as it turns out they were not. So I contacted the county assessor and found out that the developer has been paying my property taxes over the last 4 years.
My question is, what’s my next step? Can he place a lien on the condo? Can he sue? Can he take it back?
I don’t dispute that I owe him money, but I want to make sure I’m protected before I approach him.
[quote]Adam Bomb wrote:
Who did the financing? You thought you were escrowing your taxes, haven’t you been receiving escrow statements from your lender?[/quote]
Thanks for your reply.
I simplified things a bit for the purpose of the thread: the condo is a commercial condo and the payments were handled by a business partner of mine.
The lender is a local bank, I never saw the bank statements, just getting docs together for taxes and noticed there’s no property taxes paid.
I’m a licensed agent here in FL, I don’t know RE law in IL.
The “I thought we were escrowing taxes & my partner handles that” worry me a little (because you are not active in the finances that could easily disrupt your business).
So the facts are you are 4 years in arrears on your property taxes but the developer has been paying (thankfully or you most likely would have been foreclosed upon by the county for prop taxes).
I think you need to contact an IL real estate attorney and find out how you can protect yourself and what your options are to rectify it.
In FL there are squatters rights laws that if I pay the property taxes and upkeep the property at a certain point I would then own it and be able to file a deed. The developer may be trying to do that, again I don’t know IL RE law.
If the developer sold you the property and it was recorded as owned by what ever corporation that you and your partner have, the developer has no “rights” to that property as far as I can see. I mean, YOU have the deed of trust, right?
The taxes were PAID, right? They are CURRENT, right? So the government has no reason to initiate a foreclosure…
I’m sure it was an oversight of some kind between ALL parties involved with the transaction - your lender, the title company, AND the seller/seller’s attorney. If you purchased an Owner’s title policy (as opposed to a Lender’s policy), I think that would cover whatever claim the Developer may have. Although, I’m not sure you would have ANY obligation to them other than, “thanks”… Taxes are paid and you own the deed of trust… There was no WORK done so they can’t slap you with a mechanic’s lien… I mean, what can they do?
The RIGHT thing to do would be to pay them back for the taxes that they paid since the transaction was finalized. But I don’t think they would have any reason to pursue any malicious action against you or your partner for an oversight that was clearly theirs (and the attorneys representing both of the parties in the transaction). I would DEFINITELY get an attorney to represent you, but I think you will be able to resolve it amicably.
For the record I am NOT an attorney. You should DEFINITELY retain one. But I think you will be ok.
[quote]Racer377 wrote:
The developer just unilaterally decided to pay your property taxes for you, without an agreement that he would be reimbursed?
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It’s a building with 50 units in it, many unsold. I would imagine the developer is paying property taxes on 30 or so units. Maybe mine fell through the cracks…?
What is the mechanism by which the property tax bill is routed to the new owner?
