Detailed Answer
Under Delaware law, simply paying property taxes on real estate does not automatically grant you any ownership or equitable interest in that property. Property ownership transfers only through a valid deed or court order. While tax liens secure the government’s right to collect unpaid taxes, a private individual who pays another owner’s taxes generally has no statutory claim to the property itself.
Why Paying Taxes Alone Doesn’t Create Ownership
In Delaware, unpaid property taxes create a lien in favor of the State or county. See Del. Code Ann. tit. 9, Ch. 53. The lien allows the government to foreclose or sell the property to satisfy the debt. A third party who pays someone else’s taxes does step into the government’s shoes to protect a security interest only if there’s an existing enforceable agreement, such as a mortgage or equitable lien.
When You Can Recover Taxes Paid
If you hold a mortgage or other recorded security interest, you may pay taxes to preserve your priority. Under Delaware’s mortgage statutes, a mortgagee who pays taxes to keep the lien current may be entitled to reimbursement from the borrower. See Del. Code Ann. tit. 25, Ch. 3. Without a recorded instrument or court order, courts will generally refuse to create an equitable lien or force a transfer of title solely based on tax payments.
Taking Action If You’ve Paid Taxes in Error
- Obtain a copy of the deed to confirm ownership.
- Review any contracts or agreements for lien rights.
- Consider a declaratory judgment action to establish an equitable lien.
- Keep detailed records of all payments, taxes, and communications.
Next Steps for Protecting Your Interests
If you believe you have an agreement giving you a stake in the property, record a written lien or deed in the Recorder of Deeds office in the relevant county. If no agreement exists, you may explore a court petition to impose an equitable lien based on unjust enrichment, but success is uncertain without clear contractual terms.
Helpful Hints
- Always verify property title through a title search.
- File all liens and agreements in writing and record them promptly.
- Keep originals and copies of tax receipts and correspondence.
- Consult a real estate attorney before making large tax payments.
- Watch foreclosure auction deadlines if taxes remain unpaid.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in Delaware for guidance tailored to your situation.