Legal Question in Real Estate Law in Pennsylvania
False tax certification letter
We purchased a home in September 2002. On the settlement statement, we (buyer) paid the seller for the county, city/town and school real estate taxes for the balance of the year 2002. These taxes were to be paid by the seller as the settlement company claims they received a tax certification letter that the taxes were paid. This was not true. Taxes were delinquent for both 2001 and 2002. We received tax bills from the tax claims office for the 2001 taxes. These were forwarded to the settlement office and were paid. In December of 2002, our lender paid the delinquent 2002 taxes from our escrow account. Lender received a tax bill from the county tax claims office and just paid it. Our escrow account was set up to pay only the 2003 taxes because we had already paid the 2002 taxes on the settlement statement (as part of the loan). Now, we are ''in the hole'' on our escrow account and our lender wants to raise our mortgage payment by $250 to cover the deficit. Who is at fault? We did not see the tax bills as they were sent to our lender. Do we have grounds to sue?
1 Answer from Attorneys
Re: False tax certification letter
Sounds like everybody is at fault. If the title company had a valid tax cert. from the tax collector, showing that taxes had been paid, then how can the tax claim bureau later attempt to collect? They are estopped by their certification. Should the bank have paid them without conferring with you and the title company? No. Does the title company have a valid certification? You should review it. If they do, then the tax claim bureau had no right to that money. Had the bank contacted the title company, they would have known not to take it out of your escrow.
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