Title Shows an Unpaid Tax Balance
July 3rd, 2009 Posted in Buyer's Corner, Real Estate Q&A
Question:
Schedule B in the special exceptions section B paragraph 2, where it says General & Special Taxes there shows an unpaid balance of $1345.09. Is that something we have to pay? Do we have to pay for it on or before closing?
Answer:
Property taxes are paid 1/2 at a time, in April and October. The October payment hasn’t been made yet, which is what’s showing. The taxes are prorated between the buyer and the seller as of closing day. That’s what pre-paids are for–to have enough $ on hand for your mortgage servicer to pay your taxes when they come due. So you will only pay for taxes during the period of time you own the house, not for the seller’s taxes.
Good question!
Lynette Hensley
Associate Broker