Back Taxes

What should you do when you have knowledge that the property to be insured has probably been under-assessed by the tax assessor? Do you ignore this information and issue the title commitment exactly as the public record shows? Do you close the deal and hope the tax assessor won't attempt to collect later from the seller or buyer? No.

The following exception language should be added to Schedule B of the commitment and policy where land is apparently under-assessed as a result of a possible oversight by the assessor to include the value of improvements made to the property:

The lien of additional taxes which may be assessed for prior years by reason of construction of new or additional improvements during a prior year and extended for collection on a subsequent year's collector's warrant.

Posted on: Sat, 02/12/2000 - 12:00am