It’s that time of the year! Discount shopping, resolutions to consider and time to pay your property tax bills.
But, did you receive a tax bill for a property you sold in 2018? It can take municipalities a tax year to update owner changes in their systems.
Receiving the bill for a property you sold often leads to a bit of confusion, leading to concern and perhaps a tinge of panic.
The most common questions sellers have:
- Didn’t I already pay my portion of the taxes?
- Are the new owners responsible for the tax bill?
- Why did I receive the bill?
- What should I do with the bill?
- Yes, the Seller’s portion of the tax bill was given to the Buyer at closing and should be stated and itemized on the Closing Disclosure. The buyers pay the real estate taxes due after closing. This way, the buyer, and seller only pay the real estate taxes that accrued during the time they actually owned the property.
- Yes. The buyers are responsible for paying the tax bill.
- It can take municipalities a tax year to update their systems with new owner info.
- Mail the tax bill to the new owners.
- If you are still concerned, contact your title company. They can answer all of your questions and make sure all documents were sent where they were supposed to go.
For tax advice, please consult a tax professional.
For advice on selling, buying or renting real estate, consult me. 🙂
Have a very Happy New Year!