If you’ve inherited a house in Georgia, there’s a good chance you’re already dealing with probate, paperwork, bills, and a whole lot of questions.

One question that comes up often is: 

Who pays the property taxes on an inherited house in Georgia?

Well, somebody’s got to pay them because the taxes still have to get paid.

I’m Brad, the Probate House Guy. I’m an active real estate investor and a licensed real estate agent in the state of Georgia. Over the last 10 years, I’ve helped more than 300 sellers get their properties sold, either through a cash deal or by listing the property the traditional way.

I’ve learned a thing or two about probate and estates over the years, so I’m sharing what I know.

Just remember, I’m not an attorney, and this is not legal advice. Every situation is different, so you should consult a probate attorney or real estate attorney about your specific circumstances.

Who Is Responsible for Paying Property Taxes on an Inherited House?

If you inherit a house in Georgia, the property taxes don’t simply disappear because the previous owner passed away.

The first thing I would check is whether there’s a mortgage on the property.

The person who passed away may have left behind mortgage statements, financial records, or other paperwork that can help you determine whether there’s still a loan on the house. If you have access to their online accounts, you may be able to find that information there as well.

If you don’t have access to that information, you’ll probably need to go through their bills and records to figure out what’s going on.

Once you know whether there’s a mortgage, you’ll have a better idea of how the property taxes may be getting handled.

When Are Property Taxes Due in Georgia?

In Georgia, most counties generally issue their property tax valuations around June or July.

The property taxes are then generally due toward the end of the year.

Exactly when they’re due depends on the county. It’s usually around October or November, although some counties split the payments into two installments, such as one payment in September and another in November.

If you never received a tax notice in the mail, don’t assume there’s no tax bill.

If you know which county the inherited property is located in, you can go to the county tax commissioner’s website and look up the property tax information.

The county assessor and tax commissioner have different jobs. The assessor determines the value of the property, while the commissioner uses that value and the applicable millage rate to determine the property tax amount.

You can generally go online to look up the bill, see how much is owed, and make the payment.

What If There’s a Mortgage on the Inherited House?

If there’s a mortgage on the house, the property taxes may already be getting paid through an escrow account.

In many cases, mortgage companies require borrowers to escrow their property taxes. Basically, a portion of each mortgage payment goes into an escrow account.

That money can then be used to pay expenses such as:

• Property taxes
• Homeowners insurance
• Sometimes HOA fees
• Sometimes mortgage insurance

The mortgage company collects a little bit each month and then uses the escrow account to pay the property tax bill when it comes due.

Not every mortgage company requires an escrow account, but many do.

And there’s a reason for that.

Why Mortgage Companies Care About Property Taxes

If property taxes aren’t paid, the county can potentially sell the property at auction to recover the unpaid taxes.

Tax liens are senior to other liens on the property. That means an unpaid tax situation can potentially create a serious problem for the mortgage company.

For example, if a property is worth $300,000 and there’s a mortgage on it, the mortgage company obviously has a financial interest in making sure that property remains protected.

If the property goes through a tax foreclosure process and the mortgage company doesn’t properly address its interest during that process, the underlying lien could potentially be wiped out.

That’s one of the reasons mortgage companies generally want property taxes paid through escrow.

So if you’ve inherited a house with a mortgage, make sure you find out whether the property taxes are being paid through escrow.

What Happens If Property Taxes on an Inherited House Are Delinquent?

Now let’s say you discover that the property taxes are already delinquent.

The first thing I would do is contact the county tax commissioner’s office and find out exactly how much is owed.

You also want to find out whether the property has already been scheduled for a tax lien auction or tax deed auction.

Hopefully, it hasn’t gotten that far.

If it hasn’t, the county will generally publish a notice telling you when the property is scheduled for auction.

The important thing to understand is that, according to my experience, you may still be able to pay the delinquent taxes before the auction takes place and stop the property from going to auction.

We’ve actually had deals where an auction was scheduled for 10:00 a.m. on the first Tuesday of the month, and we were able to get the money wired and pay the taxes at 9:00 a.m.

The auction was stopped.

But if you do this, make sure the county knows the taxes have been paid and that the property is being removed from the auction docket.

Don’t Let Delinquent Property Taxes Turn Into a Bigger Problem

If you’ve inherited a house in Georgia and you’re already dealing with delinquent property taxes, you don’t have to figure everything out on your own.

Before the situation gets to a tax lien auction, it’s worth understanding how much is owed, where the property stands, and what options you have moving forward.

And if you’re considering selling the inherited house, we’d be happy to talk with you about it. We buy inherited houses for cash, and we can walk you through the process and help you understand your options. Fill out the form below and a member of our team will reach out to you.

What Happens If an Inherited House Is Sold at a Tax Lien Auction?

Okay, but what happens if the property taxes are delinquent and the property actually sells at a tax lien auction?

In Georgia, there is generally a 12-month right of redemption period on property tax liens.

Basically, if your property is sold at a tax lien auction to an investor, you have a period of time during which you can redeem the property.

To redeem it, you have to pay the amount the investor paid at the auction, plus the applicable amount of interest.

Here’s an example.

Let’s say you only owed $5,000 in property taxes. The property goes to auction, and an investor bids $50,000.

You may have to pay that $50,000 plus 20% interest to redeem the property.

That’s why tax liens can potentially be lucrative investments for investors. From the investor’s perspective, there can be a significant return on the money invested.

What If the Property Sold for More Than the Taxes Owed?

You might be thinking:

“Brad, I only owed $10,000 in taxes. The property sold at auction for $60,000. Why would I have to pay all of that?”

The good news is that, according to what I explain in the video, if you redeem the property, you can request the excess funds back.

So, essentially, you’re dealing with the amount of the taxes, the applicable interest, and the process of getting the excess funds returned.

This is another reason why you want to understand exactly what’s happening with the property if you’ve inherited a house with delinquent taxes.

And if you’re dealing with a specific situation like this, don’t try to figure it all out on your own.

If you’ve inherited a property in Georgia and you’re trying to figure out whether you should sell it, keep it, or simply understand what your options are, you can reach out to us at Probate House Guy. We can talk through the property and discuss the options available to you.

Go to ProbateHouseGuy.com and fill out the form on the page, and a member of our team will get in touch with you.

What Happens After the 12-Month Redemption Period?

Now, what happens if that 12-month period expires?

Once the 12-month period is over, the investor who purchased the property can begin the barment process.

The investor has to issue public notices and go through the required process. Once that process has started, the redemption clock is affected and you may no longer be able to redeem the property.

I’ve seen situations where investors didn’t start the barment process immediately. In some cases, they may wait two or three years.

According to my experience, you may technically still be able to redeem the property after the initial 12-month period as long as the barment process hasn’t been started.

However, additional interest can apply.

I believe it’s 10% per year, but don’t quote me on that. Check with the county because the county website should have the current information.

The important thing is that you’ll generally know if the barment process has been started because there will be a public notice.

Hopefully, though, you never get anywhere near this point.

Can the Executor or Heirs Pay the Property Taxes?

So, who actually pays the property taxes while the estate is going through probate?

The executor or administrator can pay them.

Or one heir can pay them.

Or all of the heirs can get together and split the bill.

The important thing is to keep a paper trail.

If you pay the property taxes out of your own pocket, keep copies of the check, receipts, and other documentation showing that you paid the bill.

Then include that information in the accounting for the estate.

Once the accounting is submitted to the court, you can reimburse yourself for the expenses you paid on behalf of the estate.

A Real-Life Example From My Own Family

In fact, I may have to do this with my grandfather’s house.

We’re getting toward the end of the year, and depending on how long probate takes, we may have to pay the property taxes ourselves.

My grandfather’s house was paid off, so there wasn’t a mortgage.

But that doesn’t mean there aren’t property taxes.

The house still has property taxes due every year.

So we may end up paying those taxes out of pocket and then getting reimbursed from the estate.

Hopefully, we’ll get our letters and get the property sold before that happens.

We’ll see how the timing works out.

The Best Thing You Can Do Is Stay on Top of the Taxes

The whole point here is to make sure you’re paying the property taxes on the inherited house so the situation doesn’t turn into something much more complicated.

Once you get into tax lien auctions, redemption periods, barment, and additional interest, things can get confusing.

I get it.

Sometimes it confuses me, too. I have to stop and think about it for a second.

So, if you’ve inherited a house in Georgia, find out what’s owed, determine whether there’s a mortgage and escrow account, and make sure the property taxes are being paid.

Nip it in the bud before it becomes a bigger problem.

And again, before you take any legal action, consult an attorney. Don’t take anything I’m saying here as legal advice. Give your specific situation to a qualified attorney, and they can provide the advice that applies to your circumstances.

Have You Inherited a House in Georgia?

If you’ve inherited a property and you’re thinking about selling it, we’d be happy to make the process easier for you.

We can make you a cash offer and potentially buy the house for cash. I’ve been doing this for the last 10 years and have helped more than 300 sellers take the easy route and sell their properties for cash.

I’m also a licensed real estate agent in Georgia and have been licensed since 2017. My license is with One Source in Woodstock, and I’d be happy to talk with you about listing the property as well.

So whether you’re interested in a cash offer or you’d like to discuss listing your inherited property,  fill out the form on this page.