Q: In Fl my wife and I are on the deed but only I am on the Note. Are we both legally responsible for prop taxes and ins?
My wife is buying a second home in Ny and lender is saying my wife even though she isn't on the home loan note in Florida is still legally responsible to pay property tax and insurance because she is on Deed. The property tax and insurance come on the home loan bill in my name only because she isn't on note. What does being on the Deed make a person responsible for? Thank you
A: You really should have asked this in Justia › Ask a Lawyer › New York › Real Estate Law ›, but I'm pretty sure that you are the only one responsible for taxes and insurance.
A: Succinctly, while she may not be personally responsible to pay the taxes and insurance, if the taxes aren’t paid, you both risk losing the real estate through a tax foreclosure, and if the insurance isn’t paid in the house burns down, you both lose as well. So I would say that you are focusing on a non-issue.
A: The answer is in different parts.
1. Real Estate Taxes - these are not a personal obligation to an owner. If the tax is not paid the taxing authority can lien the property, but they cannot get a money judgment against the owner. Under the mortgage it says that the mortgagor is obligated to pay the real estate tax. So that is a personal obligation of the mortgagor. However the mortgage also likely says that the joinder of the wife on the mortgage has no financial obligation associated with her signature.
2. Insurance - essentially the same as real estate taxes except the insurance company does not get a lien on the property for unpaid insurance. Instead they just cancel the policy. There is no personal obligation to pay the premiums for the same reasons stated above regarding the mortgage.
A full review of your mortgage documents would be necessary for an accurate discussion. The above is generalized in nature and makes several assumptions.
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