What happens if prior year taxes weren’t fully paid at a 30A closing?

If prior year property taxes were not fully paid before a 30A closing, they typically become a title issue that must be resolved before the sale can close. Unpaid property taxes create a lien against the property, and the title company will usually uncover this during the title search.

In most cases, the seller pays any outstanding taxes, penalties, and interest at closing using proceeds from the sale. If the taxes are not paid, closing may be delayed until the issue is resolved. This helps ensure the buyer receives clear title to the property.

Because tax liens stay with the property, unpaid taxes can create problems for a new owner if they are missed. That is why a thorough title search and closing review are so important in any 30A transaction.

Professionals like Zekiah Tucker help buyers and sellers avoid these issues by carefully reviewing title work, coordinating with closing agents, and identifying potential problems before they can affect the transaction.

The bottom line: unpaid prior year taxes are usually paid off at closing, but if they are not addressed, they can delay closing and create ownership issues down the road.