Home Buying in 48205>Question Details

dmgoverton, Home Buyer in Detroit, MI

The real estate Company wants to be reimbursed for taxes paid-from closing date up until the tax bill is due again.

Asked by dmgoverton, Detroit, MI Thu Nov 29, 2012

When the title is switched in my name the taxes will be as well, so will the County still bill me from the day of purchase? (I know that When a home is purchased in Michigan & ownership is transferred- what ever taxes was owed prior is erased and you are billed from the date of purchase. Previous owners has nothing to do with the current owners) So shouldn't the real estate Company go to the County for a refund instead of making me pay, won't I will be billed by the County from the day of purchase? Won't I be paying the taxes twice?

Help the community by answering this question:

Answers

6
In Michigan taxes are paid in advance. You would be reimbursing the seller for the portion of taxes from the date of closing to the next tax bill but the taxes would still be paid at the county. If you are financing the purchase and escrowing for taxes and insurance they will set up and escrow account and pay the next tax bill when it becomes due. If you're paying cash you won't owe taxes until the next tax bill usually July 1st and then December.

I hope this helps.

Karen Paytas, Realtor
Real Living Kee Realty
586-709-8465
Kpaytas@mirealsource.com
0 votes Thank Flag Link Sat Mar 16, 2013
I recommend contacting the county and possible your attorney. hopefully you went thru a title company.
0 votes Thank Flag Link Sat Mar 16, 2013
I would recommend calling the county Treasurer and find out whether or not the taxes have already been paid by the previous owner for the remainder of the year and whether or not the county Treasurer sends out reimbursements when there is a change in ownership. If the county treasurer doesn't reimburse the previous owner for any remainder of prepaid taxes, then I would think it would be a credit to the seller in the HUD1 of the settlement or closing paperwork. In other states where realestate taxes are paid during specific intervals of the year, there would be a credit to the seller shown on the HUD1 from the transfer of taxes, but new owners are usually required within most states to prepay these taxes which are then held in an escrow account by the lender or servicer of the mortgage.
0 votes Thank Flag Link Thu Dec 6, 2012
You are simply reimbursing a seller for property taxes that they've paid in advance. In Michigan taxes are payable in July and December. If you close on a house for example on December 15, 2012 you would reimburse the seller for Summer taxes from December 15, 2012 to June 30, 2013 and winter taxes from December 15th, 2012 to November 30, 2013. The next tax bill you would owe would be billed for July 1st 2013.

I hope this help explain it for you.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Thu Nov 29, 2012
You will pay the taxes forward from the day you close. Let's say the seller paid the taxes for the whole year and you are purchasing the house in the middle of the year. He has already paid the entire year so you would have to pay the taxes from the day you take posession and he would be reimbursed for the remainder of the year. I hope this helps
0 votes Thank Flag Link Thu Nov 29, 2012
Thank You Pamala. This does help. I needed to be sure that I would not billed again. Now I can close rest assured that I am not over paying. :-)
Flag Fri Nov 30, 2012
Actually --

Taxes are paid in advance by the seller. You're simply just reimbursing them for the portion of the year they paid for that you'll be living there.

If the taxes were delinquent, they will be paid current (they could be a lien) and you'll pay the seller back for the portion that you are using.
0 votes Thank Flag Link Thu Nov 29, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer