how are real estate tax prorations done?

Asked by Elaine Grill, Scottsdale, AZ Thu Mar 22, 2012

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diane, , Anaheim, CA
Tue Nov 12, 2013
How are property tax prorations done for the closing in the month of November 2013
0 votes
Ann Griffin, Agent, Mesa, AZ
Thu Mar 22, 2012
Catherine has it right, Elaine. Arizona taxes are paid in arears. The bottom line is, your Title company will calculate taxes owed by buyer and seller, to the exact day. If you have questions about how they arrived at the figure for your transaction, don't hesitate to ask them.

Ann Griffin
Prudential Arizona Properties
0 votes
Catherine El…, Mortgage Broker Or Lender, Tucson, AZ
Thu Mar 22, 2012
H Elaine,
In Arizona, property taxes are paid bi-annually - the May payment covers the last half of the previous year. The October payment covers the first half of the current year. Let's say a purchase closes April 9, 2012. The seller would pay the last half of 2011 (the previous year) at closing, if it hadn't yet been paid. On the first page of the HUD-1, the seller will give the buyer a credit for the taxes from Jan 1, 2012 through the closing date, April 9, 2012. Then in October, 2012, when the buyer pays his first half taxes, he pays the full amount, but at the closing in April he received the seller's portion as a credit.
Hope that helps explain it. If you have any further questions, please don't hesitate to give me a call.
0 votes
Debora Nicho…, Agent, Phoenix, AZ
Thu Mar 22, 2012

Real Estate tax prorations are based on the close of escrow date. Anything prior to the close of escrow is the seller's responsiblity. The day of close forward is the buyer's responsiblity.
0 votes
In Arizona, the property tax in one calendar year is not equal to seller already paid for that year. I have a case that seller will pay the tax it will be due for next. It goes to the buyer credit. Therefore, the closing date is not relevant to the responsibility like you said.
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