The most difficult time to complete closings is in the month of October, simply because the property tax bill has not yet been sent out.\u00a0 The 2013 tax bills will officially be out the first of November, 2013, but not payable until March of 2014.\u00a0 This is a difficult concept for most\u00a0buyers and sellers\u00a0to understand.<\/p>\n
<\/p>\n
So what is the best way to handle October closings?\u00a0 For me, I find the best way to handle the taxes is to estimate the 2013 taxes and collect from the buyers on the closing statement.\u00a0 I make it a point to explain to the buyers that taxes associated with closings that take place this time of year can easily fall through the cracks.\u00a0 That the buyers may never receive the tax bill because it may still be sent to the seller.\u00a0 I also explain that I don’t want them to call me in six months and ask why I did not pay the taxes when they purchased the property.<\/p>\n
As if the taxes issue is not difficutl enough to expalin (they are paid in arrears and are only accurate on the November and December closings), it is even more difficult to explain how the solid waste is charged.\u00a0 Solide waste, when appropriate, is included on the tax bill, but paid in advance.\u00a0 So, on a correct settlment statement, you will see two prorations – one for the taxes (paid in arrears) and one for solid waste (paid in advacned).<\/p>\n
<\/p>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"
The most difficult time to complete closings is in the month of October, simply because the property tax bill has not yet been sent out.\u00a0 The 2013 tax bills will officially be out the first of November, 2013, but not … Continue reading