Are brokers responsible for their clients' property taxes?

Question

I am a real estate agent. I helped a foreigner sell his house. We had listing brokerage agreement. During this period, the seller did not pay the property tax. The county collected late fees from the seller. The seller said that I did not tell him about paying the property tax. I did not receive the property tax bill. Am I responsible for this?

John Michael Frick · Answer

Unless you had a very unusual contract with the seller, no you are not responsible.

James L. Arrasmith · Answer

Based on the information provided, it's unlikely that you as the real estate agent would be responsible for your client's property taxes or late fees. However, let me break down the key points and considerations: 
 
1. Broker/Agent Responsibilities: 
   - Generally, real estate agents and brokers are not responsible for their clients' property taxes. 
   - Your primary duties typically involve marketing the property, negotiating sales, and guiding clients through the transaction process. 
 
2. Property Owner's Responsibility: 
   - Property taxes are typically the responsibility of the property owner. 
   - The owner should be aware of their obligation to pay property taxes, regardless of whether they receive a bill or not. 
 
3. Listing Agreement: 
   - Standard listing agreements usually do not include managing property taxes as part of the agent's duties. 
   - Review your specific agreement to confirm what services you agreed to provide. 
 
4. Communication: 
   - While not typically required, it's often considered good practice for agents to remind clients about important responsibilities like property taxes. 
   - However, failing to do so doesn't necessarily make you liable for their oversight. 
 
5. Tax Bill Receipt: 
   - You mentioned you didn't receive the tax bill. Property tax bills are typically sent directly to the property owner or their designated representative, not to the real estate agent. 
 
6. Foreign Owner Considerations: 
   - Foreign property owners may be less familiar with local tax obligations, which could explain the misunderstanding. 
   - However, this doesn't shift the responsibility to you unless you specifically agreed to manage this aspect for them. 
 
7. Professional Liability: 
   - While you're likely not responsible, it's worth reviewing your professional liability insurance policy in case the client pursues a claim. 
 
To protect yourself in the future, consider: 
1. Clearly outlining your responsibilities in your listing agreement. 
2. Providing written reminders to clients about their ongoing obligations as property owners, including taxes. 
3. Documenting all communications with clients. 
 
It would be advisable to consult with a local real estate attorney who can review the specific details of your case and provide personalized legal advice. They can also help you understand any unique aspects of Georgia law that might apply to this situation.

Q: Are brokers responsible for their clients' property taxes?