West Roxbury Commercial Real Estate

Q: Several years ago my father deeded his home to me and two of my siblings. Our understanding was that he would pay the real estate taxes and the insurance premiums. The mortgage on the home has been paid off for some time, and my father still lives in the house.

We've just found out that my father has not been paying the taxes on the house, and back taxes are owed. Because the house is in our names, the tax office is coming after us. My siblings and I want out, and want to do a quitclaim deed back to our father.

My question is will this relieve us of the back-tax responsibility? Or will we still be responsible for the back taxes owed?

A: Once you accepted the property from your father you and your two siblings became owners of the home. Now that your father stopped paying the real estate taxes on the property, it's up to you and your siblings to pay those taxes or lose the property.

Doesn't the property have some value to you and your siblings? If you and your siblings don't pay the taxes, you stand to lose the property. Of course, if your father has the money to pay the taxes, he could. But if he doesn't and you don't, the property can be sold out from under you and someone else will become the owner of the property.

Your father will lose a place to live, and you and your siblings will lose whatever value the property has. If the property has value, you could sell the home to pay the taxes off and then distribute the proceeds from the sale. However, you seem to be in a delicate position. Your father gave you the property with the understanding that he would pay the taxes. But he did not pay those taxes. What reason does your father have for not paying those taxes?

If your father failed to pay the taxes due to ill health or financial problems, it would seem that he did not mean you and your siblings harm. You could try to help him out and pay the real estate taxes that are owed. Eventually, when you sell the property, you and your siblings will get the benefit of the gift that your father gave all of you. If the home has appreciated in value, you will all have some money to show for keeping the property and later selling it.

You'll need to sit down with your father to discuss the issue of nonpayment of taxes and what his financial expectations are going forward. If the property is unaffordable for everyone, then selling it might be the best solution.

Q: I got married two years ago, and my wife received a contract on the home she purchased four years ago.

We were told by the real estate attorney helping us on the sale that her ex-husband's attorney filed a lien on the home three years ago. They have been divorced for eight years, and he took her back to court for child support and other issues three years ago. He lost and didn't pay his attorney. His attorney put a lien against my wife's house, which she bought after her divorce was finalized.

We are being told now that we can't sell the house until after we satisfy the lien. Please let us know what we should do, as we are closing soon.

A: While we don't know the details of the divorce and settlement, it seems that you're represented by a real estate attorney in the sale of the home. You should really consult with him or her on this issue.

In some cases, divorce settlement agreements might provide that one spouse or the other pay for the attorney's fees of the other party. In other cases, state laws may allow for an attorney to collect from either spouse the expenses from the case.

Since it's unclear from your letter why your wife might have some responsibility to pay for her ex-husband's attorney's fees related to the divorce, you might be able to work with the title company to hold back funds from the sale to satisfy the debt to the attorney should your wife be deemed to be liable for it down the road.

You should also contact the divorce attorney who assisted your wife as she went through those court proceedings to determine whether the other attorney had any right to lien your wife's home. If he did have the right to attach a lien, you might need to pay up. If he didn't, in some limited circumstances, you may have an action against the attorney for placing the lien on the home. You would need to explore this issue further with your attorney.

To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.