Tax reports, essentially, provide a list of comprehensive details about the current tax status and tax amounts due on a property. The information provided by the report is vital for carrying out various financial and commercial transactions related to the property such as the pre-closure of a mortgage loan or the eventual sale of the property.
The pre-closures are usually intricate and require detailed information on all specification related to the property, and accurate tax information is one of the main reports that are needed to accelerate the process.
Offered as a part of the consolidated title service solution, Tax Reporting Service incorporates the verification of tax documents pertaining to a real estate. The objective of the report is to ensure the property is completely free of various liabilities, indemnities or penalties.
The report specifically consists of relevant information that is critical when it comes to making informed business decisions during the new loan boarding process or the closures, which eventually transform into substantial benefits. For instance, Tax Certificates depicting the property tax payments can be quite helpful in identifying the status of mortgage loans on a property for pre-closure. These Tax certificates are usually an integral part of the reports from most title examiners across the states.
A typical Tax report also has all the details of the tax liabilities on the entire portfolio of the property, which provides a resourceful overview to the buyers during the bidding process if the estate is being considered for an auction. It can also prove highly convenient for lenders as they can maximize the accuracy of valuations during consideration of property for a mortgage loan, and can even use it to evaluate the total loan amount.
Moreover, a new loan application generally has to accede with the norm to check the Tax lien, which is imposed on the property to secure the payment of unpaid taxes. The information can be accessed from tax authorities using the property identification number and the address of the estate under consideration. The audit trail also calls for verification of legal identifiers that can indicate the current status of the tax payments, which can ideally assist in identifying the opportunities to avoid penalties caused due to possible tax evasions. However, the information may not be readily available with the authorities and might have to be procured through a formal procedure.
The report obtained as the result of an autonomous audit is recertified for conformance with all the state and federal regulations to ensure quality and consistency as it is can be an important legal instrument for both the private and government agencies that are part of the commercial transactions concerning the property. For instance, most lending or bidding institutions can use the reports to minimize their risks while dealing with felonious property with unbridled tax issues.
A comprehensive Tax report can also contain the details on various other types of liabilities such as open permits, code violations, municipal liens, etc., helping in mitigating any hefty penalties for the new owners.