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  • April 21, 2015 at 12:50 PM #21485
    Clifford
    Participant

    When a property changes hand on a certain day of the month (let’s say the 10th), does the seller or the buyer pay property tax and HOA for that month ?

    April 21, 2015 at 1:15 PM #785053
    SD Realtor
    Participant

    This is a recurring closing cost. All recurring closing costs will be prorated by escrow.

    So if the closing date is the 13th day of the month then the seller will pay the 13 day proration and the buyer will pay for 17 days (assuming an HOA payment for example).

    Same logic holds for property tax except the transition dates will align to the property tax biannual dates. Of course the property tax payment for the buyer is always an estimate based on the previous assessment. The county will send out the adjusted payment a few weeks/months after escrow closes.

    April 21, 2015 at 1:17 PM #785055
    bearishgurl
    Participant

    The seller pays a prorated amount of both until the 10th and the buyer pays a prorated amount of both from the 11th until the end of the month (HOA dues) or until the end of the tax year (June 30 for CA property taxes). Buyer only pays the prorated seller’s taxes remaining between the closing date and June 30.

    Buyer will receive a Supplemental Bill from the assessor for the rest of the taxes they owe between 5-1/2 and 9 months from closing, depending on which month they close. This bill will be based upon a change in ownership and reflect buyer’s taxes from the date of closing MINUS any seller’s taxes they already paid in escrow. If buyer bought the property at less than the seller’s assessed value at the time of closing, their eventual supplemental bill will show a credit, which can be taken in the form of a check or applied to the next fiscal year’s tax bill.

    April 21, 2015 at 1:20 PM #785057
    Clifford
    Participant

    So the seller will pay 1/3 of the property tax & the buyer will pay 2/3 for that month ?

    April 21, 2015 at 2:41 PM #785065
    SD Realtor
    Participant

    Essentially yes. All recurring fees are prorated properly. You as the buyer will not pay for anything to do with the home until title transfers.

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