My question involves real estate located in the State of: Illinois
I purchased a house (closed in July 2014) and recently received the tax bill for the 2nd installment of 2013 (which was to be paid by the previous owner/seller). During the closing, the tax credits for 2nd installment of 2013 and 1st installment of 2014 (which were owed by the seller) were pro-rated and paid to me based on the 2012 taxes (I live in Illinois and the taxes are paid in arrears). However, upon receiving the tax bill, I saw that the tax due in the 2nd installment is about 50% more than what I was credited at closing !!! Now, I understand that the closing credits are only an estimate and the actual amounts could fluctuate. At closing, the tax credits were calculated at a 10% increase year over year. However, a 50% increase is a huge hit. Its not a few tens or hundred dollars I am looking at in excess, its in thousands !
I contacted the county office and they informed me that the house was re-assessed in 2013 at a much higher value. I also got the original letter from the county office which was mailed to the seller in 2013 informing of the reassessment and its tax implications. Now, this information was very crucial and not disclosed at the time of contract or closing. If I had known at that time , I would have withdrawn from the deal since I was not prepared on paying such a tax hike on this property. This will also affect the first installment of my 2014 tax bill, which again was credited at a less amount at the closing due to the reassessment information not being disclosed.
So, can I ask the seller to re-prorate the tax credits ? If they don't agree, can I sue them for knowingly with holding critical information which would have affected the sale of this property ? Please help with any feedback or thoughts !
I purchased a house (closed in July 2014) and recently received the tax bill for the 2nd installment of 2013 (which was to be paid by the previous owner/seller). During the closing, the tax credits for 2nd installment of 2013 and 1st installment of 2014 (which were owed by the seller) were pro-rated and paid to me based on the 2012 taxes (I live in Illinois and the taxes are paid in arrears). However, upon receiving the tax bill, I saw that the tax due in the 2nd installment is about 50% more than what I was credited at closing !!! Now, I understand that the closing credits are only an estimate and the actual amounts could fluctuate. At closing, the tax credits were calculated at a 10% increase year over year. However, a 50% increase is a huge hit. Its not a few tens or hundred dollars I am looking at in excess, its in thousands !
I contacted the county office and they informed me that the house was re-assessed in 2013 at a much higher value. I also got the original letter from the county office which was mailed to the seller in 2013 informing of the reassessment and its tax implications. Now, this information was very crucial and not disclosed at the time of contract or closing. If I had known at that time , I would have withdrawn from the deal since I was not prepared on paying such a tax hike on this property. This will also affect the first installment of my 2014 tax bill, which again was credited at a less amount at the closing due to the reassessment information not being disclosed.
So, can I ask the seller to re-prorate the tax credits ? If they don't agree, can I sue them for knowingly with holding critical information which would have affected the sale of this property ? Please help with any feedback or thoughts !
Seller Disclosure: Pro-Rated Tax Credits at Closing Much Lower Than Actual Tax Bill
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