Posted by rachel on October 07, 2007 at 21:07:18:
Thanks for clarifying, Karl. Appreciate it!
Question about taxes - Posted by rachel
Posted by rachel on October 06, 2007 at 20:05:38:
I have a question about taxes. There is a mobile home I am looking at that
needs to be moved. I am getting a very good deal on it.
Here’s the issue. The home was sold to the sellers 15 years ago by a friend.
However, that friend never did the paperwork for the transfer of ownership.
At the time of the sale 15 years ago, the home was located in another county
and then moved to another county at the sellers location today.
So, the home has been sitting in the new county for 15 years. However, in the
records it still shows title in the friend’s name and in the prior county. There
are no tax liens owed on the home. The sellers told me they have not been
paying taxes for 15 years on it.
Since there are no tax liens on the home and the home is still in the friend’s
name, I’m figuring the friend has been paying taxes on it. I called the tax
assessor of the older county and they told me there are no taxes owed.
Now, the sellers are going to be doing the paperwork for their friend to
transfer the title to them (the sellers) so they can transfer to me. When they
do the transfer, the sellers will put the location now (the current county)
where the home sits.
In the application, there is a place to mark if the home was moved or not. But,
there is no date asking when it was moved.
After the transfer has taken place from the friend to the sellers, is there a
possibility that when the sellers transfer the home over to me that the county
where the home sits now will attach a lien to the home since it has been in
that county for 15 years?
I am in the state of TX. I know that when they do the SOL form, they don’t do
the transfer if there are liens attached. I am just worried a lien may get
attached after the fact.
Anyone from TX have any thoughts on this issue? Thanks for your help!
-Rachel
Re: Question about taxes - Posted by Karl (Oh)
Posted by Karl (Oh) on October 07, 2007 at 07:38:15:
Rachel,
Sorry, no idea about Texas. But I’ll tell you they handle that situation in Ohio. When the auditor discovers that a home hasn’t been on anyones tax roll, they go back 5 years and recalculate taxes owed. It would get paid to the county where the home has been for the past five years.
A title can’t transfer without a tax stamp from the treasure, so taxes have to be addressed at some point.
I just had something like this happen. I was about to buy a 10 year old Vanderbilt repo, but the county couldn’t find it in their tax roll. The original owner bought it, moved it and set it up, but never registered with the county. I called the auditor, explained that I was trying to buy this home, but couldn’t find tax info. So the auditor went back 5 years and recalculated taxes. He came up with a bill for about $600 (that should have been more like $3000). The auditor was extremely kind by valueing the home as low as he could, in an effort to help out both me and the bank. It pays to have good working relationships with the county authorities!
Karl
Re: Question about taxes - Posted by rachel
Posted by rachel on October 07, 2007 at 14:23:09:
Thanks, Karl. Definitely helps! Yes, I’m getting to know the tax people
in the office now. There’s actually 1 guy in one county I work who
handles older mobile home accounts - you’re definitely right about
having good relationships with the county authorities!
Glad to know the title transfer must have a tax stamp from the
treasure. But, I do understand the taxes will need to be addressed at
some point.
The sellers will be getting the home into their names next week and it
will reflect the new location of the home in the new county. I’ll keep
you updated on things on how things go.
Thanks so much for your help!
-Rachel
Re: Question about taxes - Posted by Karl (Oh)
Posted by Karl (Oh) on October 07, 2007 at 16:28:23:
Rachel,
I didn’t mean to suggest that Ohio titles and Texas titles are treated the same. In Ohio, taxes follow the mobile home. But for example in Kentucky, taxes follow the owner, and don’t attach to the home. Every state is unique.
Make sure you clearly understand the Texas title and tax process to keep from being burned.
Good luck.
Karl