Taxes and Assessments

Taxes and Assessments: Overview

Taxes and assessments which are due and payable at time of closing are to be listed on the requirements page of the title commitment and are to be paid in full in conjunction with the closing. Taxes and assessments which are not yet due and payable must be shown as an exception to title and may include the notation a lien but not yet due and payable.

 

Special assessments, such as street improvements, sewer lines, and sidewalk repair may result in a lien against abutting properties served by such improvements. An exception must be made for special assessments which remain unpaid. Similarly, certain assessments may be set up on an installment payment plan and such installments must be current at time of closing, with an exception being made for the lien of such continuing assessments.

 

Deed restrictions or declarations of condominiums that contain a clause authorizing levy assessments against property owners are to be specifically excepted in the policy as to such potential assessments, unless written verification from the assessment authority is received, which states that all assessments have been paid to current date.

 

Liens for unpaid taxes are to be shown as exceptions to title on the commitment and final title policy unless paid in full.