TjodanInc.,  in 33410

What happens at the closing of a sfh purchase regarding Real estate taxes? does seller pay all of 2012, how to know?

Asked by TjodanInc., 33410 Mon Oct 15, 2012

and how to be sure the seller has paid back taxes? thanks

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Danielle Sha…, Agent, Cape Coral, FL
Mon Oct 15, 2012
Back taxes become a lien on the property & would be paid at closing if delinquent (required in order to transfer clear title). Taxes for the year are prorated based on the closing date - seller pays from 1/1 to day before closing & buyer pays from day of close forward.
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Bob Brubaker, Agent, Lake Worth, FL
Mon Oct 15, 2012
The seller pays the amounts necessary to pay off any "back taxes"
and the portion of the current year to cover the actual number of days of
ownership up to the day of closing. Payment of the full amount due is the
new owner's responsibility . Taxes collected
by the closing agent are credited to the buyer's closing costs
Your closing agent can give you details and will set forth the tax"
"proration" in advance on the HUD-1 Closing statement
For you to get "free and clear" title -amounts required to pay
taxes up to closing must be "paid-up" by the seller.
You are smart to think about taxes in advance. This is an
important aspect of "out of pocket "closing costs!.
Best of success !

Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
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Tom Priester, Agent, Tequesta, FL
Mon Oct 15, 2012
Dear Tjosaninc,

The closing agent will do a complete lien search and ensure that property taxes are current. In Florida property taxes are paid in arrears with payments made as early as November and as late as March. For 2012 taxes you can pay as early as November 2012 or as late at March 2013.

More often than not, but it depends on the closing date and when property taxes are paid, the buyer will receive a credit for property taxes that they will pay for the time period the seller owned the property. All property taxes owned for the period prior to closing will be paid by the seller and those after the closing date by the buyer.

As an example, let's say you closed on a property on October 1, 2012 and the property taxes payable in November are $6,000. The buyer would be given a credit from the seller on the closing statement for $4,500. When the taxes are payable the buyer would pay the entire amount with the $4,500 they received at closing along with the $1,500 they would owe for the October through December time period when they owned the property.

I hope this helps but if you need any additional clarification please feel free to contact me.
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Annette Levi…, , New York, NY
Mon Oct 15, 2012
At closing you will payback the seller prepaid real estate taxes for the time you will own the house. Depending upon your closing date you may pay the title company (to pay on your behalf) the next quarter's taxes (you pay a higher amount then if you pay yearly). You will then be putting in escrow money for taxes from the beginning of the tax calendar till one month past your first due bill. Your mortgage officer will go over this with you to give you numbers.
0 votes
no. No. Wrong
Flag Mon Oct 15, 2012
Julie Rosent…, Agent, Jupiter, FL
Mon Oct 15, 2012
Your questions are astute! If you are in a purchase right now, my best recommendation is to make contact with the settlement agent doing your Closing, and review your HUD-I Settlement Statement for your Closing .with that person. Your HUD-I Settlement Statement is available to you from the Title/Closing company who is doing your Closing and recording your deed. Typically, the Buyer will pay property taxes from your Closing date untill the end of the year. Typically the Seller will pay the property taxes due up to your Closing Date. . The real estate taxes will be pro-rated. Your HUD-I Settlement Statement for your Closing will reflect the pro-rations. The Title Company, attorney office, or the company doing your Closing is your source of answers for your Closing..Based on your sale contract. Julie Rosenthal, Broker, ABR, GRI, TRC, EcoBroker, CAM
Helping people buy, sell and rent Florida real estate 30 years
Phone: (561)827-6789
Property Brokers International
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