Not logged in? Join one of the largest Debt Reduction Forums on the Internet! Join Now!   Latest blog post: Graduates Using Volunteer Work For Student Debt Relief

Advertisments:


Useful Links:

FTC Debt Reduction Advice
FTC Money Matters Website
National Foundation For Credit Counselling
Debt Reduction UK
MyMoney.Gov

Rent to own and property tax who pays?

Taxes! We hate paying them, so let's discuss maximizing tax deductions!

Rent to own and property tax who pays?

Postby fionnlagh » Sat Nov 30, 2013 2:02 am

I am in a Rent to Own situation with a promisary note. My landlord has decided I should pay insurance and property tax even thought the note does not address this issue and the property is not yet in my name. Can she do this and if so who claims that deduction for property tax on their taxes?
fionnlagh
 
Posts: 851
Joined: Wed Oct 03, 2012 9:53 pm

Rent to own and property tax who pays?

Postby destin » Sat Nov 30, 2013 2:10 am

If you did not agree to paying for insurance and property tax in your contract, then you are not responsible. Since you have a promissory note, it sounds like you have a Contract for Deed, not a Rent to Own agreement. However, you should probably get a lawyer to review it.
destin
 
Posts: 818
Joined: Tue Mar 22, 2011 11:54 pm

Rent to own and property tax who pays?

Postby windham » Sat Nov 30, 2013 2:17 am

By your statement "I am on a rent to own with a promissory note. A promissory note indicate that the seller is carrying a note as oppose to a rent to own agreement.

If this is a promissory note as you indicate, this is the same thing a normal mortgage lender would do, carry the note with your paying the taxes and insurance

The thing that is sort of puzzling is the fact that your name is not on the title deed, which would lead me back too the fact that you are indeed on a lease or rent to own.

If this is the case then the owner is required to pay the taxes, however, the county tax assessor could care less who pay the taxes and would not ask for ID when paying he taxes.

It might be to your benefit to clarify your agreement with the seller.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"
windham
 
Posts: 865
Joined: Mon Mar 21, 2011 6:52 am

Rent to own and property tax who pays?

Postby verddun » Sat Nov 30, 2013 2:22 am

This is only ONE of the issues involved with 'rent to own'. You indicate that your 'note' does not address the issue, which is a goodly problem on both your part and that of the 'seller'. You will need to consult with an attorney to see where you stand.

Again, as others have indicated 'rent to own' RARELY works out for either party. Get an attorney.
verddun
 
Posts: 374
Joined: Mon Jun 17, 2013 4:16 pm

Rent to own and property tax who pays?

Postby salvino2 » Sat Nov 30, 2013 2:25 am

That is decided by your contract. Only the person obligated to pay them can deduct them which is not you . When you buy property the deed must be put in your name and it secures the debt. You cannot even deduct mortgage interest. If the owner defaults you lose the property after all the money you put in it.
salvino2
 
Posts: 871
Joined: Mon Mar 21, 2011 11:11 pm

Rent to own and property tax who pays?

Postby kellan » Sat Nov 30, 2013 2:29 am

Why oh why do people get involved in rent to own?
It never, ever turns out well for the buyer.
Nothing in the contract?

Guess what. She can stop paying everything.
Her mortgage, her property taxes, and her home insurance.
^ Just to let you know.
You could easily find a foreclosure notice on your door.
kellan
 
Posts: 811
Joined: Mon Mar 21, 2011 6:20 am

Rent to own and property tax who pays?

Postby breanainn » Sat Nov 30, 2013 2:30 am

What does your contract say?

If the property is not in yoru name, you canno deduct the property taxes. If all you have is a promisory note and no contract, then they can change the terms at any time, meaning you pay property tax.
breanainn
 
Posts: 401
Joined: Wed May 22, 2013 9:59 am


Return to Taxes

 


  • Related topics
    Replies
    Views
    Last post