What this due-diligence check covers
Programs vary by state and county and may require acreage, income, management plans, applications or continuous qualifying use.
A change in use can trigger rollback or recapture taxes based on prior years.
Why it matters before closing
Tax consequences can affect closing allocation, carrying cost and the feasibility of residential conversion or subdivision.
What to verify
- Ask the assessor which program applies.
- Obtain qualification and renewal records.
- Confirm transfer and post-closing application requirements.
- Calculate possible rollback under the planned use.
Red flags that deserve follow-up
- Listing advertises low taxes without program name.
- Buyer’s intended use ends qualification.
- Deadline occurs soon after closing.
- Rollback liability not allocated in contract.
Evidence to keep in the parcel file
- Current tax bill and assessment record
- Program rules and application
- Rollback estimate
- Contract allocation of pre-closing liability
Questions to ask before the deadline
- What valuation program is active?
- Will it transfer automatically?
- What use and records are required?
- What change triggers rollback?
- Who pays a rollback tied to pre-closing years?