Property taxes, often referred to as real estate taxes are used to help pay for important things within our respective communities. In fact, our property taxes typically go towards helping improve our public schools, infrastructure, and in some cases pay for the county water and sewer charges. However, all of this only works if everyone pays their property taxes when they are due. As a result, it is important to understand everything there is to know about property taxes so that you are aware of how the system works for the betterment of our communities.
When A Property Owner Refuses To Pay Property Taxes
There are severe consequences for those property owners who refuse to pay their fair share of property taxes. In fact, most property owners who don’t pay their taxes the governing municipality has the legal right to begin charging an interest on the unpaid balance of the real estate taxes. As a result, the delinquent property owner may find themselves in an overwhelming state of debt due to the high-interest rates associated with the unpaid property taxes.
An Auction Is The Last Resort
As a last resort, the local government may eventually put a delinquent property on auction if property taxes continue to go unpaid. In fact, your specific state will have a law the details the specified amount of time before a governing municipality has the right to place a delinquent property on auction. However, this auction process can often take longer than a typical real estate transaction due to all the entities involved in such a transaction. Once there is a winning bidder, a lien may still be placed on the property as a tax sale certificate. On the other hand, some states may provide free and clear title to the new property owner after the delinquent property taxes have been paid.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.