Rollback taxes: protect your clients with the right contracts
Rollback Taxes: Protect Your Clients with the Right Contracts
When it comes to buying and selling land, there’s more at stake than just the sales price. One area that often catches agents — and their clients — off guard is rollback taxes. These taxes can surface when a property’s use changes (for example, from agricultural to residential or commercial), and the county “rolls back” to collect the difference in taxes that would have been owed without the exemption.
For buyers, sellers, and landowners alike, understanding rollback taxes is critical. The last thing you want is for your client to face an unexpected bill that could have been avoided with the right contract in place.
Why Contracts Matter
Not all contracts are created equal — and not every situation calls for the same one. Depending on whether you’re dealing with an agricultural exemption, a land sale, or a new development, contracts can determine who is responsible for paying rollback taxes and how liability is handled.
In the video, we cover six different types of contracts you might encounter, explaining the pros and cons of each and how they protect your client’s best interests.
Key Takeaways
Rollback taxes can be expensive — and surprise clients who aren’t prepared.
The right contract shifts or shares liability to protect your client.
There’s no one-size-fits-all answer — the type of transaction dictates which contract is best.
Agents who understand rollback taxes build trust and credibility by saving their clients time, money, and stress.
Why This Matters for Agents
Your role is to be the expert guide through complicated transactions. By knowing how rollback taxes work and which contract to use, you protect your clients from costly mistakes and position yourself as a trusted resource in land deals.
👉 Watch the full video now to learn how rollback taxes work, explore the six contract types, and ensure you’re always protecting your clients’ interests.
– Ara Fesperman
M. Stagers Realty Partners