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Harish Peri, Home Buyer in San Francisco, CA

How do prorated taxes work for purchase of condos in new constructions (in SF) ?

Asked by Harish Peri, San Francisco, CA Thu Mar 27, 2008

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Dear Harish,

Taxes are the same no matter what you buy. Property is reassessed upon sale and SF Tax Assessor indicates new taxes will be approximately 1.141% of the new purchase price today.

Transfer taxes are also paid by all Sellers upon completion of a sale (at various levels depending on the sale price.) Developers of new construction usually ask the Buyer pay those taxes. You can, however, negotiate with the Seller to ask him to pay or to split with you....... and sometimes you will be successful.

Please contact me if you have any more questions or want further information on the transfer tax levels.

Cheers,
Sally
0 votes Thank Flag Link Thu Mar 27, 2008
Harish, when you make an offer that's accepted, your agent will open an escrow account for you at a Title company. The Title company will act as a neutral thrid party to handle things like pro-rated items (such as property taxes). The Title company will calculate the taxes owed by the previous owner up to the date that the escrow closes. They will also give you an accounting of what you will, or do, owe the City for property taxes based on the day that you close escrow.

Hope this helps.
0 votes Thank Flag Link Thu Mar 27, 2008
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