{UAH} WHAT TO CONSIDER WHEN BUYING SOMEONE ELSE’S RENTALS

WHAT TO CONSIDER WHEN BUYING SOMEONE ELSE'S RENTALS  

The law says that whoever is the owner of a property is responsible for paying the property rate taxes of that property. 

(If you are confused about property rates, find our post on what property rates are – but in short, these are taxes for making money from your premises). 

By law, whatever property you buy, you take everything (rights and debts) with it. This means that even the new owner of a property is still responsible for the debts incurred on that property. Therefore, to avoid inheriting such tax debts, here are a few tips. 

 1. Always ask about the tax arrears and debts on the rental property before buying it and then decide on whether to inherit the tax arrears or to include it in the purchase price. 

2. Do not take the seller's word, ask for a certification of arrears from the seller, and ask KCCA for a copy to compare if what you received was accurate. 

If a buyer buys property without following these tips, then the law says that the land registration office is prohibited against registering the property in the buyer's names until the tax arrears are paid up. 

As a seller, remember to inform the inform the Town Clerk of the Division in writing that you have transferred the property so that you are not responsible for any future tax arears. Otherwise, the seller will continue to be liable for the rate until he or she does this.

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