The Impact of Property Taxes on Owner and Seller Financed Land Purchases
Property taxes are one of the many expenses that come with owning land. In most cases, the property tax bill is paid by the owner of the land. However, there are some situations where the seller pays the property tax bill. Let's take a look at how property taxes can impact both owner and seller financed land purchases.
If you are financing your land purchase with a loan from a bank or other financial institution, the lender will usually require that you pay the property taxes along with your mortgage payments. This is because the lender wants to make sure that the property taxes are paid in full and on time. If you default on your property tax payments, the lender could foreclose on your property.
If you are paying for your land purchase in cash, you may be able to negotiate with the seller to have them pay the property taxes for a certain period of time. This could be helpful if you are tight on cash and need some help with your initial expenses. Just be sure to get everything in writing so that there is no confusion later on.
When you are considering purchasing land, be sure to factor in the cost of property taxes. Property taxes can have a big impact on both owner and seller financed land purchases. If you have any questions about how property taxes will affect your specific situation, be sure to consult with a qualified professional before making any decisions.