All homeowners must pay property tax. But when you buy and sell a home, especially in the middle of the year, who’s responsible for the property taxes?
Property taxes are typically paid twice a year and they are paid in advance. Payments are due on the first day of March and the first day of September. Many homeowners will have their real estate taxes and homeowners insurance wrapped into their monthly mortgage payment, even though they don’t actually pay monthly on their property taxes. An escrow account is set up to make those by annual payments and if there’s any money left over, homeowners typically get a refund. Typically, the closing on a home sale will fall somewhere between the middle of attacks. So there’s either money that’s already been paid towards taxes or money that will be left over. [Read more…]