Property tax not paid by First owner for 1 year in 2009 Property tax not paid by First owner for 1 year in 2009

7 months ago

in Karnataka,
"Owner A" purchased property in 2008. Khatha transferred to "Owner A" . He has paid property tax in 2008 but not PAID for one year 2009. All other subsequent taxes are paid on time.

"owner B" purchases same property in 2017. Khatha gets transferred to Owner B. All other subsequent property tax dues are paid.

"Owner C" buys the same property in the year 2023. When he visits Corporation for Khatha transfer, he is informed that the property tax is due in the year 2009 for just 1 year. This tax has to be cleared before doing the khatha transfer. All other taxes upto 2023 are paid.

Please help in providing your suggestion here.
No one remembers or has the record to show that 2009 tax is not paid.
Who is liable to pay the property tax if both "ownerA" and "OwnerB" do not respond to call/request from "OwnerC" ?

Anik

Responded 7 months ago

View All Answers
A.Dear Client,
n Karnataka, property tax is typically the liability of the property owner as of the due date. If "Owner A" and "Owner B" have not paid the property tax for the year 2009 and "Owner C" is facing the requirement to clear this outstanding tax before completing the khatha transfer, here are some considerations:

Liability of "Owner A" and "Owner B": "Owner A" and "Owner B" are likely the individuals legally responsible for the unpaid property tax in 2009 because they were the owners of the property during that year. Property tax is typically assessed against the property owner at the time the tax is due.

Transfer of Liability: When a property changes ownership, it's common for the seller to clear all outstanding dues, including property tax, as part of the sale agreement. However, if "Owner A" and "Owner B" did not clear the outstanding 2009 tax, "Owner C" may still face the obligation to settle this debt to proceed with the khatha transfer.

Resolution: To resolve this situation, "Owner C" can consider the following steps:

Attempt to contact "Owner A" and "Owner B" to discuss the outstanding property tax and request that they contribute to or fully cover the amount owed.
Consult with legal counsel to explore potential remedies, such as pursuing a legal claim against "Owner A" and "Owner B" for their share of the unpaid tax.
Check with the local municipal or tax authorities to see if they can provide any guidance or assistance in resolving the issue, as they have an interest in collecting unpaid property taxes.
Ultimately, "Owner C" may need to pay the outstanding 2009 property tax to facilitate the khatha transfer and then attempt to recover the amount from "Owner A" and "Owner B" through legal means or negotiations. It's essential for "Owner C" to document all communications and efforts made to contact the previous owners regarding this matter, as this documentation may be valuable if legal action becomes necessary.
Thank you.
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