A buyer reviews a title commitment, and determines that taxes were not paid for the calendar year 2001. Which of the following correctly describes the buyer's situation?

Assuming that unpaid taxes are an error is not a responsible approach. Title commitments provide critical information about the property, and ignoring potential tax liabilities can lead to significant legal and financial repercussions for the buyer.

While it is true that the previous owner is responsible for taxes owed, the buyer inherits any liens or obligations tied to the property. Unpaid taxes can result in enforced collection actions, which may ultimately affect the buyer's interests in the property.

This statement is misleading. The statute of limitations on collecting property taxes varies by jurisdiction, and in many cases, unpaid taxes can still lead to foreclosure actions. Buyers should not assume that the age of the tax debt absolves them of responsibility or risk.