Waiver Of Escrow: Fill & Download for Free

The only mortgages that allow for a waiver of escrow for taxes are conventional loans. All government insured loans require escrows for real estate taxes.You must have a minimum 20% down payment or equity to request a waiver of escrows.Martin Straka NMLS# 589189 Phone (973) 598–5006As a mortgage professional for over 25 years I have helped thousands of home buyers and all answers are based on my education, training and experiences. All answers and opinions expressed are my own and may or may not be the same as my employer.Feel free to call me just to discuss your options. I cheerfully take calls from 7AM -10PM (Eastern Standard Time) seven days a week.

She is obligated to pay the property taxes. They are a lien on the property and can be foreclosed by the tax authority.However, it is unusual that she would have “just found out” about them after buying the house, because in most residential real estate transactions, the parties use title insurance companies to verify title and closing or escrow companies to close the transaction and make sure the title of the property conforms to the contract between the parties.So this says to me one or more of several things happened, all of which need to be explored before she decides what to do:She did obtain an owner’s title insurance policy, but the title insurer made an error and failed to note the past due taxes or, having correctly noted them failed to notice that the closing agent had not collected and paid any past due taxes before closing. In that case, the title insurance company will probably be obligated to reimburse her. That will depend on the exact wording of the policy, and on her following the exact procedure for making her claim.She did not obtain an owner’s title insurance policy but her commercial lender did, and the title company made an error on that policy or in verifying the closing agent’s payment of the taxes. Unfortunately, that does not protect her and the lender’s title policy will not insure her loss, since she has undoubtedly promised her lender in her loan documents to keep the property taxes current. In this case, she is in default of her loan, and the lender’s policy will only protect the lender if she walks away from the property.She paid cash or used a non-commercial lender (a family member or friend) and nobody obtained a title policy. In that case:If she used a commercial escrow or closing agent, and the escrow or closing instructions included a requirement that the agent determine property taxes and allocate them, the agent may be liable for failure to do that. That will depend on the exact wording of the instructions.If she did not use a commercial agent to close it, but her contract (purchase and sale agreement) with the seller included a promise that the seller would convey the property free and clear of the property taxes, she may have a valid claim against the seller. This will depend on two things:the case law in her particular jurisdiction. In some states, the purchase and sale agreement is considered fully executed (complete) upon transfer of the deed except for any provisions that expressly say that they survive closing.the type of deed the seller gave her. If the seller gave her a Quit Claim Deed, chances she has no claim against the seller. Even if the original contract included a requirement that the seller pay taxes, the acceptance of a Quit Claim deed would probably be considered a waiver of that requirement. A “Special” or “Bargain and Sale” Deed might go either way, depending on the jurisdiction. A Statutory Warranty Deed that does not list the taxes as an exception would put her in a very strong position against the Seller, since it “warrants” or guarantees that title is being conveyed free of any encumbrances except those listed.The property taxes owing are not really “past due” taxes, but taxes arising out of a change of use of the property or the termination of some exemption from taxes. In some jurisdictions, property taxes are reduced or deferred for some kinds of uses (agricultural, forestry, greenbelt easements, historical) and for some kinds of owners (elderly and disabled). When a sale happens, the new buyer must declare his/her intention to continue the special classification use or the discounts or exemptions are lost and sometimes, taxes that have been deferred for years come due as soon as the special classification status is lost. If the parties have not negotiated who is to pay those taxes, they will end up the buyer’s responsibility. An elderly or disabled discount will terminate immediately upon the sale, which may result in a recalculation of the remaining property taxes due for the year of sale, leaving a balance due that the closing agent could not collect for at closing but is still the buyer’s responsibility.Your mother should gather her purchase documents together, and if these do not include a title commitment or title insurance policy, she should order a title report from a local title company. This may be free or may involve a small fee. She should then go in to see a lawyer about this before she pays the taxes, and as soon as possible.The reason I recommend she not pay the taxes before she gets a title report and consults an attorney is because if the taxes haven’t been paid, it is possible other liens and encumbrances, possibly exceeding the value of the property, have also not been paid, or that some other errors have been made in this transaction. Before she sinks any more money into the property, she needs to make sure of all the possible problems she’s facing.Finally, even if she has claims against the seller, there is no guarantee that the seller has the money to satisfy her claims. This will not relieve her of her obligation to pay the taxes or risk losing her property.This is not intended to be legal advice, and no attorney-client relationship arises out of this or any other answer or comment I may make on Quora.

As a real estate professional, we always encourage a professional inspection. We even have you sign a waiver if you choose not to have one. It’s actually against your own interest to waive an inspection. You are buying a property “as-is” but you don’t know what “as-is” Is. The whole real estate process is set-up to include an inspection. We always say that there are two negotiations. The first is the price and the second is the repairs. You can ask the seller to fix things, give a credit in escrow or you can waive the repairs or credits. In reality, many buyers ask for as long laundry list and settle for the important things. You should be concerned with the important health and safety issues. We call these “Red Flags”. Property Disclosures by both agents, the Seller and the Inspector are why there are few lawsuits by Buyers against Sellers in recent times. Near close of escrow, you will sign off the contingency of the Inspection and Repairs. After the close of escrow, your only recourse for repairs would be a lawsuit. This would only happen if the Seller hid a condition that was not observable by the Inspector or agents. We would call this a purposeful “lack of disclosure” by the Seller. It is essentially a “Fraud”.