So you're buying or selling a home through a land contract, and now you're wondering: who actually cuts the check to the county when property tax bills arrive?
Here's what catches most people off guard. Even though your contract probably says the buyer pays taxes, the county still considers the seller the legal owner. That means if taxes don't get paid, the county comes after the seller first—regardless of what your private agreement says.
I've seen buyers assume they're off the hook because they're "just making payments." I've also watched sellers discover $12,000 in back taxes and penalties because they trusted a buyer to handle payments without ever checking. Both situations end badly.
The real issue? You've got split ownership. The buyer lives there and acts like an owner. The seller's name stays on the deed. And the property tax assessor doesn't care about your arrangement—they just want their money. Let's break down who actually pays what, and more importantly, what happens when someone drops the ball.
Think of a land contract as an IOU for real estate. The seller acts as the bank.
Instead of getting a mortgage from Wells Fargo or Chase, you're making payments directly to the person who owns the house. They keep the deed in their name. You move in and start making payments. After you've paid everything off—could be five years, could be twenty—they hand over the deed and you become the official owner.
The mechanics work like this: Yo...