Скачать или смотреть Does the seller or the buyer pay taxes?

When a home is sold, property taxes are typically prorated between the seller and the buyer. This means that each party is responsible for their share of the taxes for the time they own the home during the year. The proration is usually done at closing.

Here’s how it works:

1. Seller's Responsibility
The seller is responsible for paying the property taxes up until the closing date. If the seller has already paid property taxes for a period beyond the closing date, they will receive a credit from the buyer for the overpayment.

2. Buyer's Responsibility
The buyer is responsible for the property taxes starting from the closing date. If the seller hasn’t yet paid taxes for the year, the buyer will get a credit at closing, and the buyer will then be responsible for paying the taxes when they are due.

Example:
If the closing date is July 1st, and property taxes are paid annually, the seller would owe property taxes for January 1st through June 30th, and the buyer would take responsibility for the taxes from July 1st onward.

Important Notes:
Escrow Accounts: If the buyer is using a mortgage lender, they might set up an escrow account where property taxes are collected as part of the monthly mortgage payment.
Tax Cycle: The specific way taxes are prorated can depend on the local tax cycle, the due date for property taxes, and the closing agreement.