In a real estate transaction, who is typically responsible for ensuring that tax obligations are properly settled?

In a real estate transaction, the title company plays a crucial role in ensuring that all tax obligations are settled properly. This includes conducting a title search to identify any outstanding tax liens or assessments on the property, which could affect the transaction. Once the closing process occurs, the title company typically coordinates the payment of property taxes as part of the closing costs, ensuring that any outstanding obligations are fulfilled before the property officially changes hands.

While the buyer and seller have their own responsibilities regarding taxes—such as the seller needing to disclose any unpaid property taxes and the buyer needing to budget for future tax payments—it is ultimately the title company's duty to facilitate the settlement of these obligations at the time of closing. This helps prevent any future disputes over unpaid taxes and ensures a smooth transfer of title. The listing broker may facilitate the transaction but does not take on the direct responsibility for tax settlements.