This question has legal implications. I would advise you to speak to your attorney to discuss this matter. Otherwise you are doing yourself a disservice. Good Luck!
John A. Weber IV
Bayview Estates Realty
If you are thinking about backing out, you should sit and talk to your attorney who is best fit to advice you. Other than that, you're pretty much left with the option of grieving your taxes. Keep in mind, as mentioned below, you will not see any changes on your tax bill for the next year or so. good luck...
If you are in contract, your recourse at this point is to wait until the next tax grievance period and grieve your taxes. Hopefully your grievance will lower your tax assessment and thereby lower your tax bill for both your school and county taxes. Unfortunately, even a reduction by this method will not lower your taxes for the current tax year or for the 2011-2012 year.
Arlynn B. Palmer, ESQ, SRES, CBR, CMS, CNS
Associate Broker, REALTOR
Coldwell Banker Claire Sobel
Office: (516) 621_6300 x 205
You want to, at least, be able to ask the correct questions.
Property taxes here are prepaid, six months in advance.
They are based on the last selling price of the property, (assuming that there have been no re-assessments).
When a house is sold, the Title company will collect the advanced taxes; they will collect from 1 month to the full 6 months tax, depending on the month of the year the escrow closes.
As I said the tax collected is based on the LAST selling price of the house; the Title Company will NOT collect from you, based on the NEW selling price, YOUR BUYING PRICE.
If you paid more than the last selling price, your taxes will increase.
And in 3 to 6 months you will receive a SUPPLIMENTAL TAX BILL for the difference.
This SUPPLIMENTAL tax will not be collected by your "Impounds Account"
Your Impounds Account will be notified of the tax increase and your Servicer will send you a letter notifying you of the higher PITI for the future.
If the property had not been sold in thirty years and the tax rate had been "grandfathered" in, (such is the case in California with Proposition 13), the difference could be substantial.
If you paid less than the last selling price, you taxes will decrease. (Hopefully!)
In California we are required to have the BUYERS sign a SUPPLIMENTAL TAX advisory, as part of the Documents.
The Title Company is not allowed to guess at the future tax.
The Appraiser has nothing to do with property tax.
The GFE (Good Faith Estimate) will have the old tax amount on it, (only)>
Now, the question is;
Does this apply to your situation?
Have I answered your question?
Good luck and may God bless
There are many people who could have verified these taxes for you; your Realtor, your Attorney, but you also could have done it yourself; it is public record.