Can property tax for one-two years be included in closing cost?

Question

Thanks so much for the answers. I really find them useful.

I am looking to buy a newly constructed Condo, and the developer is not willing to negotiate on Price, instead they are giving me some ground to negotiate in closing cost. I am wondering if I can get a few years of Property Tax into closing cost as a part of the deal.

I asked my reator if I could ask the developer to cover 1-2 year's worth of Condo Fees as a part of the negotiation. He said no. What are your takes?

Thanks!!!! ^^

Answer 1

Yes, for the current tax year it can be a condition from the lender. However, you generally cannot prepay the property tax for a future year because it has not yet been calculated and assessed. You can have an estimated amount placed into an escrow account and held until the tax is due.

You need to state more information for an accurate answer:
Why would you want to pre-pay the tax before it is due?
Are you paying it for the buyer to sweeten the deal?
Is your lender requiring this?

Answer 2

If there are back taxes owed, the property can't be sold officially until those taxes are paid, since they constitute a lien against the property and the attorneys will not clear the title until they are paid..

Normally, property taxes are adjusted to date, so the buyer will pay this year next year, and is allowed for the time before the house is sold.

As far as the seller receiving extra money for the future years, no buyer in his right mind would do this since it is making you an unearned gift.

As the others have said, you have not made clear what is involved, so we are all guessing.

Answer 3

You can ask the seller to cut the price in that amount (you would have to estimate it since property taxes change) but they might not consider your offer. Of course the lender is not going to let you hold onto those dollars to pay future taxes. When you take a loan, the lender will likely require the property taxes to be escrowed. That means you will have to divide the annual property tax by 12 and pay that 1/12th each month with your house payment. The lender will hold on to your taxes until it is due and then give you the money back with which to pay the taxes.

Answer 4

First off, unless your state has special rules against it, you can ask for whatever you want, so long as it is legal and for legal purpose. Who is your realtor really representing? Is he also the sellers agent? If so you may want to find another agent since he can not seem to seperate both your interests.

In your offer or counter offer, you can ask them to prepay your condo association fees if you wish. These fees are usually a set amount and can only be changed according to the CCR of the homeowners association. If the seller is not willing to negotiate on the price, he may not be willing to negotiate on those prepayments either, since they entail cash out of their pockets.

If they are willing to pay closing costs or part of them, ask for a specific dollar amount (ie: $3500.00) that is to be credited towards your recurring and non-recurring closing costs. This could substantially lower the amount you need to bring in at closing.

Best of luck

Answer 5

First question to ask yourself and the Realtor is how is the market? Is it a buyer's market or seller's market? If there are a lot of condos on the market, then it is a buyer's market. You can ask the seller to pay for anything. The trick is not to ask for too much, otherwise the seller may think you are trying to stick it him. Your Realtor, who I assume is representing you, should be able to answer all your questions and give you reasonable answers as to why you can't ask for all the condo fees be paid for a year or two. If you are not getting honest answers from your Realtor, then you may have to find another.

Answer 6

last value is a term that applies to the expenses linked with merchandising or determining to purchase a house. they are paid each and every time you purchase or sell a components. There are the broking's last expenses and there are the client's expenses. on occasion those expenses exchange into area of the negotiations, many times in this form of the broking paying particularly some the client's expenses to defray the value of the residing house, somewhat notwithstanding if it relatively is a typical time purchaser in a decrease priced residing house, when you consider that on occasion those purchaser's are money detrimental. additionally, on occasion we lump issues into the class of last expenses that at the instant are not technically that. as an occasion, some human beings evaluate the prorated taxes or a survey, or the brokers value last expenses. it is expenses linked with merchandising or determining to purchase, yet no longer technically last expenses. At last, you will would desire to sign a sort detailing all expenses. bypass returned and discover this from once you acquire this residing house 3 years in the past. it relatively is a sort with lots of little strains and columns. We call it a settlement or HUD. you will desire to shop those continuously, and you will have needed it for taxes. it is going to declare HUD settlement or something comparable on the spectacular and you and the broking and the brokers/criminal experts would have signed it. you will see that the broking has a component and the client has a component with all expenses indexed. Your Realtor or a call agent can help you already comprehend it.

Answer 7

I suppose theoretically the two parties can work out whatever they want...I know when we bought our house in June it was pro-rated so we only paid taxes for half the year. I think that's typical, unless the two parties work something out. For instance, if the person is getting a greal deal on the property anyway, they may be willing to pay the back taxes (this is what you mean, right?) and it can basically be worked into the total they have to pay.

Answer 8

The mortgage company would normally collect the prorated estimated amount with monthly mortgage payment to pay every six months. If you want to pay in advance, you could tell the mortgage company you will want to pay upfront and they will hold it for you until it's due. But there is no benefit to you for doing that because the tax amount is included in your mortgage payment anyway. In another word, you wouldn't really have to come up with cash to pay property tax as long as you tell the mortgage company to include that amount in mortgage payment.

Answer 9

yep, just bought a house and had to pay one year up front. (personally i got screwed cuz we have a 300 dollar credit where i live and the mortgage company didn't give it to me!) but anyway, yeah. if you have anything like the credit we have, make sure you tell your lender WAY in advance so they can't say, well...we'll make it up next year...blah blah! they will screw you big time if you don't watch out!

Answer 10

I could answer those questions online for you if your interested. I'll need a few more details on this scenario for you.

Antal
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