Auctions: Who Pays Outstanding Property Tax?

If a property goes to auction, what will happen to the outstanding property tax?
Will there be a tax lien on the property that the new buyer or the bank must take care of ?

"Auctions have their own criteria. It is generally best to find out (especially working as a Buyer's Agent expecting a fee if you are registered with that Auction and if they posted in their notice an indication that you will be paid) ALL of the terms, conditions and outstanding liens on the home, even municipal liens like water and sewer bills or fire hydrant tax or water district tax bills, and City or Town Taxes that may have not been paid, and have accrued interest and additional fees. Also, Title V is usually a huge problem, so it is wise to find out any information from the Town Hall or Board of Health Office with any recorded information of pumping dates, testing, compliance or failure status.

Most Auctions have been well advertised, so the Buyer's Agent or the Buyer (if not utilizing the services of an Agent) must take great care and concern BEFORE the Auction actually happens--even within an hour of the day of the Auction--since a lien can be placed on the property at any time. The Bank usually reserves the right to outbid any Buyer--- that is the chance you take at an Auction. If the Action Notice indicates that it is an Absolute Sale... the Buyer is responsible for every outstanding bill for the property that is relative to that property.

In a full foreclosure, that is then re-entered into inventory as an REO (Real Estate Owned) or Bank Owned property-- ALL liens and bills and outstanding debts--sometimes including unpaid electrical, cable and gas/oil bills have already been addressed and taken care of by the Attorney who did the foreclosure, and the Bank is the one who has already taken the 'hit' for all of these outstanding debts, except Title V. (Gas Burner Conversion Rentals and leased or rented Propane tanks have usually been reclaimed by their distributors ahead of time). Due diligence is key if you expect to be paid and do not want the risk of a 93A." - Avery Brannaka, Carol Brannaka Realtors

"The Real Estate Taxes, depend on how the auctioneer handles it. It may be stated, that you, the Buyer at the auction, will be responsible for the tax, thus you have to add/factor that amount into the total cost to purchase the property. If nothing is stated-- which is very unusual-- then the bank will have to pay the taxes at the closing. At the auction, you need to investigate and ask questions. In our area we have a statement from the Town stating what the status of the taxes are, as of the date of the statement." - David Bisbee, Realty Executives