Could I inherit an unpaid municipal vacant home tax bill left by the previous owner when I buy a property?
This is a real possibility worth checking for specifically, since an unpaid municipal vacant home tax can behave similarly to unpaid property tax in that it may attach to the property itself rather than simply disappearing with a change in ownership. If a previous owner failed to pay an assessed vacant home tax, or failed to file the required declaration at all in a city that treats a missed declaration unfavourably, that outstanding amount could still be sitting against the property when you go to close.
This is exactly the kind of item a proper municipal tax and status search, done as part of standard closing due diligence, should be checking for specifically - alongside a request to confirm whether any declaration was filed and what it stated - rather than assuming the standard property tax search alone covers every municipal charge that could exist.
Ask your lawyer to specifically confirm the vacant home tax declaration and payment status for the property, not just the general property tax account, before you close.
Key takeaways
- An unpaid municipal vacant home tax can attach to the property, similar to ordinary tax arrears.
- A missed declaration by the previous owner can also create an outstanding balance.
- This is not automatically covered by a standard property tax search alone.
- Have your lawyer specifically confirm the vacant home tax status before closing.