Francesca, Home Buyer in Brooklyn, OH

How do they determine how much of the property tax has to be paid @ closing (long Island NY )?

Asked by Francesca, Brooklyn, OH Thu Oct 30, 2008

closing/property tax

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6
In Suffolk County, you pay 1/2 of your annual property taxes on 12/1 and the other 1/2 on 5/1. When you close on your home, you may have to reimburse the Seller for taxes they have paid for, but haven't used up yet. For example, if you close on your home on Feb 1, you would be responsible for paying back the Seller for the taxes they paid in Dec for Feb. March & April. In addition, most mortgages include something called an "Escrow Account". Each month, when you make your mortgage payment, the payment would include 1/12 of your property taxes. This money accumulates so that when your next tax bill comes in, your lender has sufficient $$ to pay that bill. This also means that when your account is set up (at closing) your lender will also require you to put some $$ into the escrow account, along with up to 2 months worth of extra $$, so there will be enough when your first bill comes due. Your lender should be able to estimate this amount in the GFE (Good Faith Estimate of Settlement Costs) provided to you when you apply for your mortgage. Check this amount disclosed with what your Attorney tells you. The amounts should be very nearly the same. If they are not, start asking lots of questions why.
If you need any additional explanation or have additional questions, call me.
Rich Murphy, Wells Fargo Home Mortgage 631-382-2261or email me at richard.j.murphy@wellsfargo.com
1 vote Thank Flag Link Sun Nov 2, 2008
Regardless of how the technicalities of the matter are handled and the basic mechanics involved, the property tax bill is usually very fairly prorated between the the purchaser and seller at the time of closing.
0 votes Thank Flag Link Fri Oct 31, 2008
Please call your lender and your atty for detail information. The lender will take 6-8 months of taxes in advance. The taxes are paid per year or twice a year form Jan 1st to Dec 31st.
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0 votes Thank Flag Link Fri Oct 31, 2008
Have you been in contact with a lender? they will ususally have a pretty good idea of what should be expected at the closing table.

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GOOD LUCK
0 votes Thank Flag Link Fri Oct 31, 2008
Your attorney figures out the the tax per diem. The annual tax is divided by 365. Since taxes are paid annually (or semi-annually), the seller will get a credit for the tax paid until the end of the tax year. If the seller paid taxes until December 1, and you are closing November 15, the seller will get a credit for 15 days.

The lender normally pays the taxes for you, and charges you for that and homeowners insurance in your monthly mortgage payment. The bank will want 6 months worth of tax money in escrow at the closing table.
0 votes Thank Flag Link Thu Oct 30, 2008
Uusally property taxes are prorated so that the seller pays fo rthe time up until they sell and the buyer takes over the day they purchase. however say the seller paid for the year in advance, then the buyer would reimburse them at closing for the time he isnt goiing to be there but already paid. On the oppisitte side if the seller hasnt paid yet, they will deduct from his portion the amount . you need to know what the tax year is. most places is July 1 to June 30 or is it Jan 1 to dec 31? that would matter.... hope this helps.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Oct 30, 2008
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