Someone is calling me and tell me they're half ownership

If you sell the home, the process will satisfy the back taxes first before the proceeds are distributed to all parties. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

If five people are on title and four of them are selling their ownership interests to the remaining owner or to another buyer, the property taxes generally do not get divided into five separate tax bills. The property taxes are attached to the property, so any unpaid property taxes need to be addressed as part of the transaction. In a typical California escrow, the title and escrow companies will obtain the current tax information and determine what is owed. If there are delinquent taxes, they can generally be paid through escrow at closing from the proceeds, so the property can transfer with the appropriate liens and tax obligations addressed. As far as how the five owners split the tax responsibility among themselves, that can depend on how they hold title, their ownership percentages, and any agreement they have between them. California recognizes co-owners as having fractional interests, but the property itself is assessed as a whole rather than each owner receiving a separate property-tax assessment. So I would recommend having the title/escrow company review the preliminary title report and current tax bill before anyone signs or transfers their interest. If you’re answering this as a real estate agent, I’d also make clear that the exact allocation between the owners should be confirmed with escrow/title or a real estate attorney, especially if there are unpaid or delinquent taxes.

If five people own a house and four are selling their shares, any unpaid property taxes should generally be addressed through escrow/title as part of the transaction. The title company can obtain the current tax balance and determine whether the delinquent taxes can be paid directly from the sale proceeds before the remaining money is distributed to the owners. If the five owners have equal 20% interests, the tax responsibility may be divided according to their ownership percentages, but you should check the deed, title report, and any ownership agreement before assuming that. Also, if someone is claiming they own 50% of the property, have the title company verify the recorded ownership before anyone agrees to the transaction.

Mary, the first thing I would do is verify exactly who owns the property and what percentage each person owns. Someone simply saying they own half is not enough; the recorded deed and title records will show the actual ownership. If five people own the property and four are selling their shares, any unpaid property taxes or tax liens need to be addressed as part of the sale. In many cases, the title or escrow company will determine the amount owed and arrange for those to be paid from the sale proceeds before the sellers receive their money. Before anyone signs anything or agrees to a buyout, I would recommend having a title company review the ownership and liens and, if there is a disagreement about ownership, speak with a real estate attorney. That way, you know exactly who owns what and what must be paid to transfer the property. Taxes cannot be split, and delinquent tax liens are not against all five individuals, but against the property. Brenda Ashby | REALTOR® | JohnHart Real Estate | DRE License # 01700249

Mary, don't take that caller at their word. Ownership is a matter of public record, so before anything else ask a title company to run a search, or pull the deed yourself at the county recorder where the house sits. That one document settles who actually owns what and in what shares. On the taxes, the county bills the property, not each person. The full balance normally gets paid out of the sale proceeds at closing, and whatever remains is divided among the owners. The wrinkle is that selling four shares out of five is messy, since most buyers and lenders won't touch a partial interest. With five owners, unpaid taxes, and a stranger claiming half, please talk to a local real estate attorney before anyone signs anything. I'm licensed in California, so take this as general direction and lean on the title company and attorney where the property is. Alla Novytska, Realtor®, JohnHart Real Estate, DRE #02254775

If five people are on title and four of them are selling their ownership interests, the property taxes generally remain attached to the property rather than being treated as five separate tax bills. If the transfer is being handled through escrow, the title/escrow company can obtain the current property tax information and determine how any outstanding taxes, delinquent amounts, or other charges should be handled at closing. The closing statement can then reflect the appropriate credits and debits between the parties. If the four owners are selling their shares specifically to the fifth owner, rather than selling the entire property to a third party, I strongly recommend having the title company and an attorney review the transaction. The ownership percentages, existing liens, unpaid taxes, and terms of the transfer can all affect how the transaction should be structured. Important disclaimer: This is general real estate information and is not legal, tax, or financial advice. The exact responsibility for property taxes between co-owners depends on the circumstances and the documents governing the ownership. I am a Realtor, not an attorney or tax professional, so I would strongly recommend consulting a qualified real estate attorney and/or tax professional, as well as the title/escrow company handling the transaction, before signing any documents or transferring ownership. — Juan Picos, Realtor

Mary, the short answer is that those taxes cannot be split five ways. A delinquent property tax is a lien against the whole house, not against anybody's individual share, so it has to be paid in full at closing out of the sale proceeds. There is no version of this where four owners pay their portion and hand the buyer clean title. Here is why. The county assesses the property, not the people. It does not issue five bills and it does not track who owns what fraction. So the entire delinquent amount, plus penalties and interest, sits on the house until somebody pays all of it. On top of that, co-owners are generally jointly and severally liable for property taxes, which means the taxing authority can pursue any one of you for the whole balance, not just for a fifth of it. No title company will insure a sale with delinquent taxes outstanding, so the payoff is not optional. In practice it works like this at closing. The title or closing company pulls a tax certificate showing the exact payoff figure, pays the county out of the gross proceeds, and then divides what is left among the sellers. If your agreement says nothing about it, the taxes usually come off the top, which means all five owners effectively contribute in proportion to their share, including the one who is not selling. If you want the non-selling owner to carry their own fifth rather than having it come out of everyone's proceeds, that has to be negotiated and written into the agreement before closing, and they have to agree to it. But the bigger problem in what you described is not the taxes, it is the structure. If only four of five owners are selling, a buyer would be purchasing an undivided four-fifths interest and becoming a co-owner with the fifth person. Almost no ordinary buyer wants that and almost no lender will finance it, so realistically you have three paths. All five sell together, which is far and away the cleanest and gets the best price. Or the four sell their interests to the fifth owner, which is often the simplest deal to close. Or, if the fifth owner will neither sell nor buy, any co-owner can file a partition action and ask a court to force a sale and divide the proceeds. In a partition the liens get identified and paid first, and a co-owner who paid more than their share of taxes can usually ask to be reimbursed out of the proceeds. Partition works, but it is slow and it costs real legal fees, so treat it as the last resort rather than the opening move. On the person calling to tell you they own half. Do not take anyone's word for what they own, and do not let a phone call set your timeline. Pull the current deed records at the county clerk's office, or ask a title company to run a search, and find out exactly who is on title and in what shares. That is a small expense and it ends the argument with a document. If anyone is pressuring you to sign a deed or a quitclaim to "clear this up," stop and take it to a real estate attorney first. Signing away a fractional interest in real property is very hard to undo, and people who create urgency around signatures are usually creating it for a reason. One thing to watch: delinquent taxes accrue penalties and interest quickly, and eventually the taxing authority can foreclose on the property itself. That would wipe out everyone's equity, the four who want to sell and the one who does not. That shared deadline is usually what finally brings a reluctant co-owner to the table, so it is worth saying to them plainly and in writing. I am a real estate professional, not an attorney, and co-ownership and property tax rules vary meaningfully from state to state, so please confirm the specifics with a title company or a real estate attorney where the house is located. Your first two calls should be to a title company for a current title search and to a real estate attorney about the partition question, in that order, because the title search will tell the attorney what he is working with. I work the Palos Verdes Peninsula and the South Bay in Los Angeles, and I am glad to help you find a good agent wherever the property is once ownership is sorted out. My name is Zoltan Peresztegi and you are welcome to reach out. Zoltan