Does Paying Property Taxes Give Ownership of the Home?
Q: Someone paid my deceased uncle’s property taxes before I could pay them. Does this mean that person now owns the property? The property has a mortgage on it. What should I do next?
Does paying property taxes mean you own a home?
A: Here’s the good news: Just because someone paid the taxes on your deceased uncle’s property does not mean that they get to claim ownership of the home.
But, and it’s a big one, if your uncle failed to pay the taxes on his home for several years, the local taxing authority has the right to sell the property to satisfy that debt. In turn, the person that buys the property — the tax buyer — can end up owning the property if the owner fails to pay back the taxes owed after a certain period of time.
Don’t wait to get your taxes paid
Who owns the property now that your uncle has passed? You, or the owner, need to go to the local taxing authority and find out how much money is owed for past due taxes. In some places, you have to order a certificate of redemption, or some other form. No matter what it is called, you want a statement of the balance that’s owed for the property’s unpaid taxes.
Once you have that amount, you have to pay the municipality what is owed. Don’t be surprised to find out that the amount owed is a whole lot more than the original tax bill. The local taxing authority may tack interest onto the unpaid balance, along with a variety of fees.
Pay your back property taxes promptly
You need to get these back property taxes paid quickly to avoid losing the property. Given that we don’t know how long it’s been since your uncle stopped paying his taxes, you should move on this quickly. Time is of the essence.
Now, if your uncle, the executor of his estate, or his lender (if he still had a mortgage on the property) were paying the property taxes when due, it’s also possible that someone paid the taxes on your uncle’s property by mistake. Even if that’s the case, you should still pay the taxes and clear things up. The person that paid them in mistake will have to apply for a refund.
Update the address on the property tax bill
When you go to the tax office, make sure you update the address where the tax bill should be sent. That way, you’ll receive future tax bills. If you don’t get a bill, you might forget that the taxes are owed. Then, you’ll have to go through the tax redemption process all over again.
Next steps include:
- Change the address on the tax bill
- Get caught up on past due bills
Then, your uncle’s property should no longer be in jeopardy.