Behind on Property Taxes and Want to Sell House
Question: I’m behind on property taxes but have made payment arrangements with the municipality. I would like to sell my house to get completely debt-free. Can I use the proceeds from the sale to pay off the property taxes? Is this something that can be negotiated at the closing and the lawyer pay the City?
Answer: When the house is sold, the property taxes will automatically get paid first, even before the mortgage. The city will not let you transfer ownership until the taxes have been paid, so yes, your lawyer will arrange with the city for the property taxes to be paid on closing.