Buyers learn new house has unpaid taxes from years ago

Q. My wife and I purchased our first home a couple months ago. Everything was great until we received something in the mail telling us we owed more than $3,000 for unpaid 2015 real estate taxes. We called our attorney but unfortunately he has not been working due to an illness. What do we do now?

A. At closing, you received a title commitment from the title company that handled this transaction. That commitment should have reflected the unpaid 2015 taxes. One of the duties of the title company is to inform the parties of any unpaid real estate taxes.

If the commitment did indicate the unpaid taxes, I have no explanation why those unpaid taxes (plus interest and related charges) were not paid at closing from the seller's proceeds. Far more likely, however, is that the title company missed the unpaid tax obligation. I can't imagine both attorneys and the closing officer missing this on the commitment.

You may not have yet received an owners title policy. However, the title company is obligated to send it to you and it should be consistent with the commitment that was previously issued. Whether you have actually received the policy yet is not relevant. Contact the title company where you closed, ask for the claim department and tell them your story.

They will request a copy of the notice you received. Presuming the unpaid taxes are a valid lien on the property and the title company failed to disclose the unpaid taxes on the commitment, they should pay the unpaid tax bill plus all related charges and interest.

Q. I am the executor of my aunt's estate. Part of the estate is a three flat my aunt owned. It is paid off and brings in about $3,500 a month in gross revenue.

My aunt left her entire estate to six family members, to be shared equally. The balance of the estate consists of mutual funds and cash.

Some of the family members would like to keep the property and share in the monthly income, though no one has yet to volunteer to take care of the property, collect rents, pay taxes, etc. They would just like to receive a check every month. The remaining family members want to sell the property and split the proceeds.

I can see both sides and could go either way, but I see a problem with who would handle the day-to-day issues that arise with keeping the building. I don't want to do it and I don't see any of the other family members stepping up to the plate.

We all generally get along and I don't want to see this turn ugly. Any suggestions?

A. Sure. Obtain an appraisal of the property. Let's say it appraises for $400,000 and three of you want to keep the building and three of you want to sell. The three "keepers" either obtain a loan for $200,000 or use their share of the remaining estate funds and pay off the three "sellers." These are all estimates as there would be other factors which would impact these figures.

Another option would be to keep the building and hire a management company to handle the day-to-day issues. The problem with this is, generally, a three flat does not generate enough revenue to support a management company.

• Send your questions to attorney Tom Resnick, 345 N. Quentin Road, Palatine, IL 60067, by email to tom@thomasresnicklaw.com or call (847) 359-8983.