If we sold our home at the end of June, who would pay the July property taxes that are due at the begining of July - us the sellers or the buyers? Just wondering how that worked. I mean, that would probably be a pain for buyers to have to go and pay the taxes right after they move in.
2007-05-31 02:34:54 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If they are 2007 taxes due, they would be prorated, so you'd pay the share for the portion of time that YOU owned the home, the buyer would pay the rest. They would adjust this at the closing.
If they are 2006 taxes due, you'd pay the whole amount, plus a prorated share of 2007 taxes due.
2007-05-31 02:39:21 · answer #1 · answered by Anonymous 7 · 1⤊ 0⤋
First of all Congrats on selling your home! I hope you are buying a bigger and better one! Good Luck! You would have to pay the pro rate amount of taxes that you have consumed and would be taken care of the money you should receive from your house sale. The buyers would have the responsibility to pay the difference of the taxes. This is just assuming you do not owe any back taxes. It would be your responsibility to pay the back taxes and if this is the case it can also be deducted at the closing. Make sure it is told to the closing agents and that you read the agreement before signing it. This is very important because then it could come back to you and you would have to pay the penalty for late taxes. God Bless
2007-05-31 02:45:37 · answer #2 · answered by ccutestuff2001 2 · 1⤊ 0⤋
When you come to the closing table, any unpaid property taxes for the year 2006 will be deducted off your portion of the proceeds from the sale, and a check will be sent to the taxing authority to retire the debt. Additionally, you can expect to be charged a proration of taxes due for 2007 for every day you owned the house until closing. This money is turned over to the new owner, who will then use it to pay the entire tax bill for calendar 2007.
2007-05-31 03:08:49 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
You are always paying a year behind, so the taxes you are paying for is for 06. The taxes you will pay next year would be from this year. You will find out what you owe if and when you sell your house. youll get the bill.
2007-05-31 02:44:15 · answer #4 · answered by threepointchamp 2 · 1⤊ 0⤋
I believe it would be the buyer's responsibility.
2007-05-31 02:39:05 · answer #5 · answered by Nice try 5 · 0⤊ 1⤋