I'm selling my home before my 2nd installment on my california property tax bill is due. Do I need to pay it?
This question pertains to a is link to a short sale as well. What are my options?
7 Responses
bostonianinmo
22 Jul 2010
Coolmama
22 Jul 2010
If California is like Illinois then you have to pay it because you are taxed on the previous year
LOCKNLOAD1
22 Jul 2010
Come April… yes!
ProudRepublicanM
22 Jul 2010
Yes, but it will probably be paid at settlement.
Elton
22 Jul 2010
First, I work as a webmaster for a real estate company in Florida. Rules there may not be the same. However, if the tax bill is not due now, then it is in suspension since you are in the middle of closing. The tax bill should be prorated between you and the buyer. On your HUD statement, it will show what you owe to date and what the buyer will owe. It will all be handled by the title company. In your example, you do not have to pay any taxes at this time as it will be taken care of at settlement.
Even if you owed back taxes in any state, the same would be true. The taxes will be settled at the time the property is conveyed. You have nothing to worry about.
wartz
22 Jul 2010
It depends.
If your property taxes are paid by your present lender through an impound account, it will pay the tax bill. Make sure the escrow holder is informed of this.
If you are going to close escrow before April 10, have your escrow company take care of it. They have to see what is paid anyway.
If you pay it out of pocket and your escrow gets stalled until after April 10, pay it with a cashiers check or money order, in person if possible, and get a receipt so that your escrow holder can be satisfied that it is paid. Your escrow will credit you with the prorata amount of taxes from close of escrow to June 30.
Jim Kirby, CPA/P
22 Jul 2010
The property taxes are currently due but don’t become delinquent until April 10. Therefore, escrow will pay them if you or the bank have not paid them. Escrow will pro-rate the second half property taxes. You will receive a credit, and the buyer will be charged, for the unused portion between the close of escrow and June 30, 2008.
It will be accounted for on the HUD-1 settlement statement either way so whether you pay it now or not is irrelevant. If you do pay it, make SURE that the title company has a copy of the bill and paid receipt. If you don’t pay it, make sure that they have a copy of the bill. (The should verify it with the tax collector’s office as part of the closing process, but don’t leave it to chance.)