Home Buying in 07078>Question Details

Homelynx, Home Buyer in 07040

Are property taxes in NJ paid in arrears or advance?

Asked by Homelynx, 07040 Fri Feb 7, 2014

I just paid quarterly taxes in January but am selling my house, which should close in March. If I'm correct, I paid for the next 3 months. Does the buyer need to pay me back for any taxes paid by me that count for a period after the closing date?

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Hello Homelynx,

NJ RE taxes are due in the middle of the quarter. So for example, the 1st quarter covering Jan 1-March 30, the tax is due Feb 1st. It's behind for January, but ahead for March. Depending on your closing date, your attorney or the title company will calculate the amount owed back to you on a per diem basis. This holds true for any contracts or annual warranties you may have like your alarm service, sprinkler service, pest control or heating contract. If you have paid for an entire year, the buyer may want to take over your policies and they would owe you money for the balance. Please let me know if u have more questions. Best, Karen Bigos of Towne Realty Group, Short Hills kb@trghome.com or 201-417-1600
0 votes Thank Flag Link Fri Feb 7, 2014
The answer is both
when we pay Feb 1st we are paying for January Feb and March
Yes at the closing the closing agent or attorney will prorate the taxes to the day of closing
1 vote Thank Flag Link Sat Feb 8, 2014
Your attorney or title company will do a calculation to determine the amount of taxes paid per day and will then credit the appropriate party on the settlement statement so that both you and the buyer pay property taxes for the days you actually own the home.
1 vote Thank Flag Link Fri Feb 7, 2014
Just curious. If you are selling your home, why not ask your real estate agent or attorney these questions?
0 votes Thank Flag Link Fri Feb 7, 2014
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