Understanding Property Taxes (Ad Valorem Taxes)

Property Taxes are normally a secured debt, secured by the home or real estate.

Property taxes create a lien against the property which attaches to the property on January 1 of each year even though the taxes are not due until later. Property taxes are a personal obligation of the person who owns or acquires the property on January 1 of the year the tax is imposed. Sale does not relieve the person of this obligation, but as a practical matter, the tax is usually paid at closing when the property is sold, or at foreclosure by the buyer.


Back to Debt Library