When it comes to buying property, there are many options available to buyers. One popular method for purchasing property is through a land contract. A land contract is a financing arrangement where the buyer makes payments directly to the seller instead of a lender. This allows buyers with less-than-perfect credit to purchase property.

However, with a land contract, there can be some confusion about who is responsible for paying property taxes. In this article, we will explore the question of who pays property taxes on a land contract.

In a land contract, the seller retains legal ownership of the property until the buyer pays off the contract. This means that the seller is responsible for paying property taxes on the property until the buyer takes ownership.

Once the buyer has made all the necessary payments and owns the property, they become responsible for paying property taxes. The buyer will receive the property tax bills and will need to pay them on time to avoid penalties.

It`s important to note that if the seller fails to pay property taxes while they still own the property, the buyer may be responsible for the unpaid taxes once they take ownership. This is why it`s essential to include a provision in the land contract that requires the seller to keep up with property taxes.

To ensure that everything is done legally and correctly, it`s essential to work with professionals throughout the land contract process. A real estate attorney can draft a land contract agreement that includes all the necessary provisions, including who is responsible for paying property taxes.

In conclusion, the seller is responsible for paying property taxes on a land contract until the buyer takes ownership of the property. Once the buyer owns the property, they are responsible for paying property taxes. It`s crucial to work with professionals to ensure that all legal requirements are met when entering into a land contract.