bought house in Texas, seller didn't pay property taxes

[bluebayou]

so 2 months after buying the house here in Texas, I got a letter from Cass County requesting delinquent taxes from 2007. 

I called the County and they said to call the title company first.

The title company had a receipt that they THOUGHT was from 2007 taxes but was actually 2006.  The house was on the market for almost 2 years.  "Our" title company got the tax receipt from another title company when another buyer's deal fell through.

So..........
Legally, I think that I am on the hook for $1000 in taxes for the house when I didn't even own it.

The question:  is the title company legally/professionally/whatever obligated to make this right?  Are they on the hook for these taxes?

I have a page that says something to the effect of "seller will make payable all delinquent taxes to the title company" if any discovered. 

What to do I do?  October is the magic month for property taxes in Texas apparently.  As of right now, Cass County says pay us by 5-30-08 or take $50 penalty.  Pay us by 6-30-08 or take 20% penalty and pay legal fees. 

I have $1500 to my name after making down payment, moving, etc.

[torpedoman]

The title company is on the hook for anything they missed that's why it is called title INSURANCE, tell them to pony up before it turns into lawyers fees also.You may want to contact your Realtor because they are the ones that contracted that company.

[ihuntbucks]

The title co. or lawyers or whoever did a "title search" on the house is responsible.When you were at the "closing" all of this was suppose to have been taken care of.The title searcher screwed up,big time.It is not you fault.They pay,not you cause they were suppose to make sure it was a "clear title" with no liens against the home;this includes back taxes.......Rick

[victorcharlie]

While this is pending, make sure you touch base with the assessors office every once in awhile and let them know your working on getting them paid. 

No one owns property anymore, we just lease it from the county and the city.......

[rex6666]

I would check to see if a title search was done before you bought the house, not just used
the one from 2-3 years before.

[alsaqr]

The title co. or lawyers or whoever did a "title search" on the house is responsible.When you were at the "closing" all of this was suppose to have been taken care of.The title searcher screwed up,big time.It is not you fault.They pay,not you cause they were suppose to make sure it was a "clear title" with no liens against the home;this includes back taxes.......Rick

Exactly.  Bought a piece of property and the lawyer doing the title search missed a paving lien.  He had to pony up for the amount of the entire lien.   

[Dee]

bluebayou, read your contract. I have bought and sold houses in Texas, and have one for sale in Sherman Texas, now. The contract SHOULD specifically state that there are no liens, or taxes at the time of purchase on the house. SOMEONE SIGNED this contract stating that there was not. Falsifying info on a contract can be very serious, and I doubt the signer will want the problems of doing something like that.
I believe you will be all right, but you should get on the ball, and get this to the attention of the Realtors and others involved.

[bluebayou]

While this is pending, make sure you touch base with the assessors office every once in awhile and let them know your working on getting them paid. 

No one owns property anymore, we just lease it from the county and the city.......

My thoughts exactly.  It is mine............but I have to pay you money to let me keep it. 

[bluebayou]

bluebayou, read your contract. I have bought and sold houses in Texas, and have one for sale in Sherman Texas, now. The contract SHOULD specifically state that there are no liens, or taxes at the time of purchase on the house. SOMEONE SIGNED this contract stating that there was not. Falsifying info on a contract can be very serious, and I doubt the signer will want the problems of doing something like that.
I believe you will be all right, but you should get on the ball, and get this to the attention of the Realtors and others involved.

I went to Texas Land Title Association and my "mortgagee title policy" is to protect me against this.  Also, I looked at the bundle of paper from the signing and there is a letter that says "I have researched, blah, blah, blah"  There is another that says, "all delinquent taxes are payable by the seller to the title company". 

My wife's aunt has title company in Arkansas and said to keep on them.  That the title company is responsible, but that no matter what not to let it go past October. 

I just want to know that it will be done.......having it hanging in the background is unnerving. 

Thanks for the advice, all.

[Tencubed]

Here in Washington State the Attorney General's office would be most interested if the title company gave you any static at all about taking care of this problem.  One call and you would be getting all kinds of apologies from the title company for any inconvenience this "misunderstanding" may have caused.

Been there, done that.  Also works great with insurance companies that don't want to settle a claim fairly.  One call to the State Insurance commission.   

[bluebayou]

(According to the title company)

The seller agreed to pay his delinquent taxes today.  The title company lady has his money and is mailing to the courthouse.

I will be following up on it.

Someone at work pointed out that if the guy paid his 2006 taxes in July 2007, then maybe he is just a chronically late payer.