Legal Question in Real Estate Law in New Mexico
Our trust holds a real estate contract on a house valued at $350,000. A local lawyer bought the house in 2009 and put $30,000 down. He is current on payments; however, he has not paid any of the real estate taxes since he purchased the house--he insisted that the taxes and insurance not be escrowed. Anyhow, in further investigation I have found he has over $200,000 in new mexico state tax liens and irs liens against the house. Is there anything we can do?
1 Answer from Attorneys
I would have to see the contract. The usual solution would be to serve notice to pay the real estate taxes. The other taxes are not liens on your interest in the property. Contact an insurance broker and get insurance on the house unless you don't care if it burns.
Your basic remedy is to terminate the contract if he doesn't pay the taxes, and then have him removed as a squatter. This will be expensive, easily hitting $25,000 in attorneys fees.
Did you have an attorney on your side prepare or review the contract? Is there a clause that lets you charge your purchaser the attorneys fees you incur?
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