A Texas license holder is working with a buyer purchasing a home with delinquent property taxes. At closing, how are delinquent taxes typically handled?
Correct Answer
A) The delinquent taxes are typically paid from the seller's proceeds at closing to deliver clear title, since tax liens have priority over most other liens
Delinquent property taxes create a lien that has priority over most other liens under Texas Tax Code §32.05. At closing, the title company typically ensures delinquent taxes are paid from the seller's proceeds to deliver clear title to the buyer. Tax liens must be resolved for the buyer to receive insurable title.
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