What must a lawyer verify regarding property taxes during a real estate transaction?

In a real estate transaction, it is crucial for a lawyer to verify that property taxes are paid in full. This verification is essential because unpaid property taxes can create significant liabilities for the buyer after the transaction is completed. If taxes are not settled, they may lead to liens on the property, potentially impacting the buyer’s ownership and could even result in foreclosure. Ensuring that taxes are current protects the interests of the buyer and confirms that the property is free of encumbrances that may affect its value.

While assessing future tax values, ensuring correct filing, and understanding tax increase thresholds can be relevant in the broader scope of real estate planning, the immediate concern in the context of a transaction is the present status of property taxes. Failure to confirm that taxes are paid in full could lead to unexpected financial burdens for the buyer, making this step a critical part of the due diligence process in real estate dealings.