Is this Property Tax Fraud? Options?

Asked by Ginny Foley, Natick, MA Sat Jul 5, 2014

My wife and I recently purchased a home in Natick, MA

In MA, the taxes are paid in arrears and the last year's taxes were listed as $5100. We just received a bill for $6900 and a back-payment for last year's escrow. We believe the seller was notified of this prior to the closing (in June 2013) but did not disclose it so that the house sale would go through.

This is a difference of about $1800 that would have affected our purchase of the house. Who is at fault here? The seller? Our lawyer who didn't locate this major discrepancy? Our agent?

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Ginny Foley, Home Buyer, Natick, MA
Sun Jul 6, 2014
sorry, right. But we are being asked to pay the previous year's 2014 back taxes (about $1700 difference that our escrow didn't cover) and an additional $160 a month to our mortgage payment. These were unknown to us.
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Richard Shap…, , Framingham, MA
Sun Jul 6, 2014
Your tax bill that just arrived is for the fiscal year 2015. The bill that just arrived (assuming 7/1) is due 8/1 for the July 1-Sept 30 quarter. Taxes are not paid in arrears, the mortgage payment is paid in arrears.

For each fiscal year, the first two quarter taxes paid are estimates that will be adjusted up/down (most likely up) when the tax rate is set in the fall. Then the last two quarters are actual bills and are adjusted to make up any difference from the estimated first two quarters. So the July bill that just arrived should be the same amount as the tax bill that your seller paid for the May1-June30 quarter that just ended.

Your attorney can talk you though this.
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