Home Buying in Dublin>Question Details

Trendsetter, Home Buyer in Dublin, CA

In the closing costs, property tax to the city is supposed to be paid for full 12 months or 6 months or for the remaining months of the year we buy?

Asked by Trendsetter, Dublin, CA Tue Feb 18, 2014

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By the way, property tax is paid to the county and not the city. If you are paying your own property taxes (no impound account), you will pay property tax for the time period from the close of escrow, which is when you become the owner, to the end of the fiscal half-year. The fiscal year is divided into two periods: from July 1st to December 31st and January 1st to June 30th. Payments are due 11/1 (delinquent 12/10) and 2/1 (delinquent 4/10). Depending upon when your escrow closes, the escrow company will compute the amount that you must pay. For specific information in your case refer to your escrow company.

If you are paying part of your property tax and insurance with each payment the computation is different. Again, consult with your escrow company for specifics in your case.

You may also be subject to supplemental property tax which is the difference between the tax rate for your seller and your new tax rate based upon your purchase price. That will be billed to you weeks or months later by the county.
1 vote Thank Flag Link Tue Feb 18, 2014
It depends which month you close escrow. Normally, property tax installment is divided in 2 periods from July 1st-December 31st and Jan 1st- June 30th. Depending on when you close escrow, title company will compute the prorated amount that you have pay at the time of closing. Impound accounts run differently and vary lender to lender. Because home values have considerably increased over the past 2 years, you may be charged with a " supplemental tax bill". I hope this clarify any confusion you may have. All the best!
0 votes Thank Flag Link Mon Feb 24, 2014
How much you pay depends on what time of year you are closing, but you will pay a prorated amount of the 6 month cycle. In the event the bill hasn't come out yet you would get a prorated credit from the seller for whatever portion they would owe.

Best Regards,



Lance R. King – Broker/CEO
King Realty Group

BRE # 01384425
415.722.5549 - Cell
lance@king-realtygroup.com
0 votes Thank Flag Link Wed Feb 19, 2014
You would be paying the second installment plus any pre funding your impound account needs. Just email me if you have any other questions or concerns.

Alex Greer
Loan Officer
NMLS #1056079

http://www.TheMortgageOutlet.com
408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Wed Feb 19, 2014
Trendsetter,

What you're seeing if you're closing right now in CA (mid-Feb, 2014) is that you are basically paying the entire second installment (at the seller's rate). This is because the tax bill is due (Feb. 1), but most owners have not yet paid it (late April 10).

If you have any questions about this, let me or your escrow company know.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Wed Feb 19, 2014
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