Sell a Home with Back Taxes Owed

Can I put my house up for sale if I owe back taxes on it, and pay the tax bill at time of settlement?

1 Answer

Speak to a local real estate attorney or broker to be sure of local custom, law, and practice . . . . but in general, yes. Let the local tax authority know that you are planning to sell the home, and have them give you a "payoff figure" for the amount due. Make sure they have not begun the process of taking title to the home or similar (depending on how long the taxes have been overdue). Do the same with your mortgage lender, or lenders, if applicable. Make sure that the net profit after commissions and sales tax stamps is enough to pay all parties. If listing the home through a brokerage, make sure you make them aware of all parties that must be paid through the sale. If selling on your own, be upfront with the buyer and the buyer's attorney or escrow company so that everyone is aware of all bills that must be paid at settlement.