Bulletin: VA2019004

Dear Associates:

It has come to our attention that TACS Taxing Authority Consulting Services, P.C. (“TACS”), is now acting as an agent collecting delinquent taxes for several Virginia jurisdictions. TACS is providing consumers and settlement agents with delinquent tax statements for the jurisdictions for which they are contracted, and those jurisdictions are referring all delinquent tax inquiries to TACS. 

Note that we are aware of at least two claims filed in the past few weeks regarding additional delinquent taxes owed on properties insured by a Stewart agent. In both situations, the Stewart agent relied upon tax payoff information provided by TACS, and was unable to get additional information from the locality confirming the tax delinquency due. 

In order to avoid potential delinquent tax claims, settlement agents should obtain a letter from TACS, that outlines the total tax payment amount that is due (and which is a final amount), on the day of closing. In addition, the agent should obtain a personal undertaking from the seller/borrower regarding any additional delinquent taxes that may become due, and take a title exception to potential additional delinquent taxes in any owner’s policies that are issued, as follows: 

“Potential Additional Delinquent Real Estate Taxes and/or Associated or Related Costs and Fees, which may become due subsequent to the effective date hereof, and which were not reported by the taxing authority or its agent(s) prior to the recordation of the documents insuring the estate herein.”  

THIS BULLETIN ONLY APPLIES TO VIRGINIA PROPERTIES WITH DELINQUENT REAL ESTATE TAXES PRIOR TO CLOSING, AND WHERE THE MUNICIPALITY HAS CONTRACTED WITH TACS TAXING AUTHORITY CONSULTING SERVICES, P.C. AS ITS AGENT.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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