Seller Financing..Taxes/Insurance

[knbradley]

Hello-

When you do seller financing who is responsible for the taxes and insurance...the seller or the buyer??

[yrush2000]

Depends on how you create your contract.  But mainly we would need to know, is the seller carry the whole note or are you in a lease option???

If they are just carrying the entire note for the home, then you will be responsible for everything as you own the home and they are just acting as the bank. Also the house should be placed in your name, with the seller holding a lien on the home for the purchase price.

If your doing a lease option then the seller should be responsible for taxes and insurance till you buy the home.

[knbradley]

I am trying to buy from a guy that is willing to do seller financing. He doesn't have to pay taxes bc he is disabled. I thought that since he was holding the note, the amount pay him would cover the taxes (which he has none) and the insurance.

So, if I am responsible for the insurance and taxes, would I have to get the house in my name and pay taxes and insurance or could I leave it in his name and be exempt??? Thanks!!

[JoeDC]

I too would like to know.
Joe