Home Buying in Grafton>Question Details

Mararunher, Home Buyer in Grafton, MA

If you sold your home and you close on July 10th and I just received my real estate tax bill..do I pay it? The period covered is July thru August.

Asked by Mararunher, Grafton, MA Sun Jun 30, 2013

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Taxes are prorated when you close, you can check your closing docs to see the times & amounts paid or contact the closing attorney for assistance. As for your agent, there are some that close and move on, viewing the selling as just a transaction, and others that like to build relationships. I do not know which category the agent you used falls into but if you feel disappointed do not let that cloud your view of the other many agents out there. Good luck
Web Reference: http://wenrealty.com
0 votes Thank Flag Link Sun Jun 30, 2013
Your Attorney will have that all taken care of for you. The other agent is correct: You are only responsible for your use, however bills like taxes are prorated for three months so if you sell and have two months prepaid, that will come back to you at the closing. The new owner will pick up taxes, condo fees, etc, starting the day they own the home. You can also get credit for oil left in the tank etc.
Hopefully you have hired a real estate Attorney and have a great agent to help you. Congratulations on your sale!
0 votes Thank Flag Link Sun Jun 30, 2013
Thank you. Unfortunately, as soon as my home sold, I never heard from my agent again...
Flag Sun Jun 30, 2013
The best thing for you to do is contact the closing attorney. You will be responsible for the portion where you occupied the house. Technically if you just received the payment it is not due until August 1st for the period of August thru October

You actually should be paid through August 1st at this point and you should be receiving a 20 day credit for taxes paid. You will see this on the HUD settlement statement as prorated taxes.

The problem is if you try to pay it now your payment will get lost in the shuffle. Co-ordinate with the closing attorney the best way to handle it. This is not an unusual scenario for them at all.
0 votes Thank Flag Link Sun Jun 30, 2013
Is there a due date for your payment that is prior to your closing date?

Payments of taxes, HOA fees, assessments, fuel oil, etc. are normally pro-rated. This means that for those expenses that are paid which cover a period of time beyond the closing date, you would receive a credit for these expenditures at the closing.

Your best avenue for good information on this is likely via your closing agent. Contact your attorney or title company for a clarification.

Good luck,

Bill
0 votes Thank Flag Link Sun Jun 30, 2013
I would consult the closing attorney for the bank. Usually you do pay it and they reimburse you the days you owned the house. However, if you don't pay it they will take the portion owed from you from your proceeds on the HUD statement. I would check on Monday because the closing attorney's office gets a statement from the town to prove if taxes have been paid or not and you want to let them know before they prepare your final HUD statement for closing. Hope this helps.
0 votes Thank Flag Link Sun Jun 30, 2013
Yes since you will still own the property for the first 10 days of July. At the closing, the buyer will have to "reimburse" you for the remainder of the tax bill - July 11th to the end of August. Same for your HOA fee if that is due prior to the closing date. Those 2 amounts will become part of your net proceeds after the sale and will be on your HUD statement. Your closing attorney will explain all the line items on the HUD to you.
0 votes Thank Flag Link Sun Jun 30, 2013
I disagree about paying it. Quarterly tax bills that go out on july1 are not due until July 31. Let the closing attorney handle it at closing.
0 votes Thank Flag Link Sun Jun 30, 2013
From my experience in my area, Allan and Richard are right. It is my opinion tha rid it is due before the 10th, you should pay it, but you will be reimbursed at the closing from July10th to the end of the billing cycle.
0 votes Thank Flag Link Sun Jun 30, 2013
The July 1 bill covers july1 through sept 30. If you close on the 10th you will be responsible for taxes July 1-9. The buyer is responsible from th 10th on.

The closing attorney will divide up and portion the payment out on the HUD 1 closing statement.

Don't pay the bill as the attorney will handle as part of closing duties.
0 votes Thank Flag Link Sun Jun 30, 2013
In my area, at the closing if you have paid it you will get back the pro rated amount from the Buyer. If you have not paid your Property Taxes you will reimburse the Buyer at the closing for that portion of the month.
0 votes Thank Flag Link Sun Jun 30, 2013
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