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chr006 · Jun 19, 2009, 02:23 AM

Hi,
I have buy a property in Florida recently on eBay, and I got a general warranty deed.
Someone knows if these kind of deed covers the buyer from delinquent taxes?
Who must pay these taxes if there are some on the property?
Thanks for helop me

AK lawyer · Jun 19, 2009, 02:28 AM

Is this a trick question? Sure, the buyer is covered.

Unless it says something like "subject to interests of record".

chr006 · Jun 19, 2009, 02:35 AM

Sorry if the questions seems stupid but I am not common with usa laws.
So if I see there are any delinquent taxes what should I do? Contact the seller or the country?
So do you think, buy property by a general warranty deed is the most safe way to own a property?

AK lawyer · Jun 19, 2009, 02:41 AM

Originally Posted by chr006

So if i see there are any delinquent taxes what should i do? contact the seller or the country?
so do you think, buy property by a general warranty deed is the most safe way to own a property?

Contact the seller and tell them they neglected to pay the taxes and demand they do so immediately.

Yes, a general warranty deed is the way to go, but you need a local attorney to help you with the details.

chr006 · Jun 19, 2009, 02:49 AM

Thanks for your professional answears, if you have a law office let me know :)
How much would it cost to let check these by an attorney?

ScottGem · Jun 19, 2009, 05:20 AM

A general warranty deed guarantees that the seller has clear title to the property and conveys that title to the borrower. If there are delinquent taxes, then they represent a cloud on the title and the seller is responsible for them.

I would very strongly stress that you contact a real estate attorney in the area where the property is. Generally, in the US when property is sold there is a closing and at the closing any back taxes would have been noted and paid out of the proceeds of the sale. I've never heard of selling a property on E-Bay without a formal closing (doesn't mean it can't happen).

But if there are taxes owed on the property, then the seller lied by issuing a warranty deed and that brings up the issue of what else he may not have been truthful about.

LisaB4657 · Jun 19, 2009, 05:40 AM

Not only should you get an attorney to represent you, but you should NEVER buy any piece of property without getting a title search and title insurance policy.

chr006 · Jun 19, 2009, 05:47 AM

I have check at the country GIS and there I saw the property is registred at my name, also at the tax collector and the County Property Appraiser the property is registred at my name. There I can look at the history and I see the all property selling history and also my property transfer is registred there, I can also download from these page ( County Property Appraiser) a copy of the deed that I have get in original from the seller.
What do you think about?
I think the property was transferred on my name... I hope I am right!

ScottGem · Jun 19, 2009, 06:23 AM

Certainly sounds like it was. But I agree with Lisa, you should never buy a property, especially remotely, without a title search and title insurance.

chr006 · Jun 19, 2009, 06:40 AM

I took a loook at the history of my seller, I saw the neighbour lot was sold with the same deed as my to an other seller, and these one resold the lot 2 years ago. Now I think I can be little bit reassured, right?
I am only confused why the seller did not pay the taxes of 2007 and 2008, is that current in usa?
Wich are the bennefits of a title insurance?

LisaB4657 · Jun 19, 2009, 07:16 AM

When you buy a title insurance policy the title company first performs a title search. They look at the prior owners, whether they had clear title and validly transferred the property, whether all liens and taxes were paid, whether all judgments were cleared, etc. Once this is complete, and once you pay the premium, they issue a title insurance policy. The policy says that if anyone comes along with any kind of claim to your property that they did not find in their searches, including any kinds of liens like taxes or old mortgages, then they will clear those issues at their expense. If they are unable to clear them then they will reimburse you for the full value of the policy, which is usually the amount that you paid for the property.

Call a title company today.

AK lawyer · Jun 19, 2009, 08:30 AM

Originally Posted by chr006

i have check at the country GIS and there i saw the property is registred at my name, also at the tax collector and the County Property Appraiser the property is registred at my name. There i can look at the history and i see the all property selling history and also my property transfer is registred there, i can also download from these page ( County Property Appraiser) a copy of the deed that i have get in original from the seller.
what do you think about?
i think the property was transfered on my name.....i hope i am right!!

Originally Posted by chr006

i took a loook at the history of my seller, i saw the neighbour lot was sold with the same deed as my to an other seller, and these one resold the lot 2 years ago. Now i think i can be little bit reassured, right?
i am only confused why the seller did not pay the taxes of 2007 and 2008, is that current in usa?
wich are the bennefits of a title insurance?

Title seems to have been transferred to your name, but that's clearly the effect of your recording the warranty deed. The main thing to watch out for is whether some interest in the property was recorded before your deed was recorded. That's what a careful title search, and title insurance, are for.

Originally Posted by LisaB4657

When you buy a title insurance policy the title company first performs a title search. They look at the prior owners, whether they had clear title and validly transferred the property, whether all liens and taxes were paid, whether all judgments were cleared, etc. Once this is complete, and once you pay the premium, they issue a title insurance policy. The policy says that if anyone comes along with any kind of claim to your property that they did not find in their searches, including any kinds of liens like taxes or old mortgages, then they will clear those issues at their expense. If they are unable to clear them then they will reimburse you for the full value of the policy, which is usually the amount that you paid for the property.

Call a title company today.

In your case, of course, much like locking the barn door after the horses have escaped, the title company would not now insure your title. But you could get them to to a title search for your peace of mind.

LisaB4657 · Jun 19, 2009, 09:03 AM

Originally Posted by AK lawyer

In your case, of course, much like locking the barn door after the horses have escaped, the title company would not now insure your title. But you could get them to to a title search for your peace of mind.

The OP can still buy a title policy (and should do so). The title company will insure even after title has been transferred. It's just that now the OP will be responsible for removing the exceptions and he won't have the option of declining to buy the property if title can't be cleared. But the fact that he received a warranty deed will definitely help. He can sue the seller for any exceptions and hope that the seller has the money to clear them.

ScottGem · Jun 19, 2009, 12:24 PM

A title insurance policy insures you that the title to the property is good. If someone comes forward with a cloud on the title, the Title company represents you and works to clear the title.