Awhile back I purchased 3 acres of land next door to a golf course. I had intended on building homes on the land, but due to a change in my finances and the downturn of the RE market I could’nt proceed with my plans. I’m currently behind on paying the RE taxes, so I’m looking to sell the land to the country club that owns the golf course. My question is this: Do country clubs typically receive some form of property tax exemption? A city official I spoke to suggested that back taxes may not be an issue for a country club due to the fact that they might have exemptions that lower their tax liability. I’m just looking for clarification in the matter, if I had more information in that regard I could do a better job at putting together a proposal to the country club.
Thanks for any advice
Country Clubs typically do not have an exempt status. Sometimes, a municipality will give exemptions to bring a business into that county/city but not typically if they are buying adjacent property.
If I were in your position, I would be concerned with a tax lien and an investor purchasing that certificate. After a redemption period, the investor can foreclose and take over the property and you will be out of the deal with either a loss or a judgment against you for the outstanding mortgage that defaulted and a 1099 for the loss by the mortgage holder.
It is possible and a viable option to sell your property to the club but you will need to negotiate your back taxes in the deal and make certain they are paid at closing so you are freed from liabilities mentioned above.
Check the state laws for tax liens/tax certificates and the redemption period to see how much time you have to work with. This will be important to know during the negotiations of selling the property and reduce your weak position.
Hope this helps.
Rob
R.E. Investor/Mentor