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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default What Happens if a Co-Owner in Possession of the Property Stops Paying Taxes

    If you jointly own real estate with another person, and they have sole possession of the property, what happens if they stop paying the property taxes as agreed? They were supposed to pay the taxes and insurance as part of the agreement for them to have exclusive possession, and now the property is scheduled for a tax sale.

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: What Happens if a Co-Owner in Possession of the Property Stops Paying Taxes

    If the other co-owner does not want to risk losing the property at the tax sale, the other co-owner should pay the tax bill. They can then attempt to recoup the money from the owner who defaulted.

    Tax sale laws vary by state, and unless the co-owner knows for certain that there is a redemption period after the sale, they should assume that once the property is sold at the tax sale they will not be able to recover the property.

    If it is possible that there was an error in the notice or procedure for scheduling the tax sale, the co-owner can discuss with a real estate lawyer whether the error might allow for the postponement or cancellation of the tax sale -- but if the property taxes aren't paid, that's at best going to buy some time before a tax sale ultimately occurs. If the co-owner wants to keep the property, the taxes must be paid.

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