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Old 02-07-2013, 10:46 AM
 
17 posts, read 171,139 times
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I am assuming property taxes are paid in advance. So the taxes withdrawn from my escrow in Dec 2012 cover me for 2013. What happens if I then sell my house in March. Do I automatically get a prorated tax refund for the 9 months I do not own the property or do I have to get the new buyers to pay me at closing?
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Old 02-07-2013, 10:57 AM
 
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I think that gets pro-rated and handled in closing.
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Old 02-07-2013, 11:02 AM
 
Location: The Greater Houston Metro Area
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No, property taxes are paid at the end of a year. When you close (let's say March 15th), the title company will debit you for the time from 1/1/13 to closing day. When your loan is paid of (again the title company will take care of this), you will be refunded what is in your escrow account by your mortgage company. Everything else like it will also be prorated. Example: since HOA dues are paid at the beginning of the year in advance, you will be credited their portion for the remainder of the year.
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Old 02-07-2013, 11:16 AM
 
Location: Houston area
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Correct, property taxes are paid at the end of the year and due by Jan 31st of the following. Not in advance. Any excess you have in your escrow account will be refunded at closing as a credit from your lender. This applies to taxes, insurance, and any other escrow account that has an excess.
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Old 02-07-2013, 11:56 AM
 
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Both city love and Cherry Johns is correct.

Same occurs to HOA fees, but buyer pays to you the prorated amount.
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