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based on what's been posted thus far .... the Seller has accepted this calculation method when they sign the contract. Can't be legally disputed when the settlement statement appears, nor the day after signing the contract.
The "real estate industry" has no interest in this. No agent or attorney or lender is making more because of this "loophole". Only Wake County government (and any other counties that use the standard NC contract).
It's very interesting, suddenly, and for good reason IMO. I'll have to chat with my most-seasoned R/E closing attorney about this issue. Obviously I'd stay silent for my Buyers. But you'd certainly prefer when representing a Seller that the contract state the Buyer will refund the Seller's property taxes on a pro-rata prepaid basis.
The sales contract boilerplate says proration will be done by Calendar Year; it does not say buyer will be credited from January 1 to date of sale nor seller will be credited from date of sale to December 31 but could just as well have credited the seller. IMO, Calendar Year was used in the contract just to say that Seller is responsible for taxes from January 1 to date of sale and buyer responsible for taxes thereafter. The easy fix is for the seller agent or seller to modify the clause to say prorated by Fiscal Year instead of Calendar Year; even better would be to modify the boiler plate contract to say Fiscal Year; after all our government and property tax bills are managed and operated by a July 1 to June 30 Fiscal Year.
The government does not get any of the taxes overcharged to the seller, it goes straight into the buyers pocket to help him buy the place.
Honestly that's kinda a crock and the vast vast vast majority of people will accept the way it's done. Honestly have you ever seen anyone challenge this in all your closings? If so what percentage?
You don't calc your tax proration exposure or your agent does not for you prior to contract?
Why not?
That fault rests entirely with you an/or your agent, and it's a shame you seek to blame some third party.
I can do it in a few minutes for any property.
I understand the quibble, but don't buy into the pique.
How many protestors did the "right thing" when they purchased, and demanded that the proration strictly follows the fiscal year?
None.
Now, with the shoe on the other foot, it's suddenly an issue.
Bah.
You don't calc your tax proration exposure or your agent does not for you prior to contract?
Why not?
That fault rests entirely with you an/or your agent, and it's a shame you seek to blame some third party.
I can do it in a few minutes for any property.
I understand the quibble, but don't buy into the pique.
How many protestors did the "right thing" when they purchased, and demanded that the proration strictly follows the fiscal year?
None.
Now, with the shoe on the other foot, it's suddenly an issue.
Bah.
Quite frankly I would expect not only the agent but also the attorney to calculate this fairly however it sounds like neither party has an interest nor cares about the result as the language in the contract is used for I'm guessing a huge majority of RE transactions?
I did however notice you really didn't answer the question. Since I don't buy and sell RE for a living I have no access to the data but other RE professionals on here seem concerned and make it sound like "that is how it's done".
Quite frankly I would expect not only the agent but also the attorney to calculate this fairly however it sounds like neither party has an interest nor cares about the result as the language in the contract is used for I'm guessing a huge majority of RE transactions?
I did however notice you really didn't answer the question. Since I don't buy and sell RE for a living I have no access to the data but other RE professionals on here seem concerned and make it sound like "that is how it's done".
You don't calc your tax proration exposure or your agent does not for you prior to contract?
Why not?
That fault rests entirely with you an/or your agent, and it's a shame you seek to blame some third party.
I can do it in a few minutes for any property.
I understand the quibble, but don't buy into the pique.
How many protestors did the "right thing" when they purchased, and demanded that the proration strictly follows the fiscal year?
None.
Now, with the shoe on the other foot, it's suddenly an issue.
Bah.
Mike, You can do it in a few minutes for any property, but you would do it wrong, listen to your own video on proration: https://youtu.be/M6aM4mYECdQ
Let's gitter right!
I did not calc the proration since I hired the pros, agent and closing attorney to do it, little did I realize they did not know what they were doing and ingrained into a fraudulent process.
Mike, You can do it in a few minutes for any property, but you would do it wrong, listen to your own video on proration: https://youtu.be/M6aM4mYECdQ
Let's gitter right!
I did not calc the proration since I hired the pros, agent and closing attorney to do it, little did I realize they did not know what they were doing and ingrained into a fraudulent process.
Wow good find. He really put his foot in his mouth here.
While I wouldn't call it fraudulent this is certainly a serious issue that should be brought up. Would you consider spearheading a campaign to get this fixed? Possibly contacting the press?
The topic of this thread - how many closings are done with sellers paying more than their fair share of their property taxes.
Read the thread.
From the OP:
"Is pro-rating the tax bill at the time of sale done using a calendar year just for the purpose of convenience?"
There's the topic.
Again, those who protest should negotiate their contracts to sell and the line items they want as they want them.
This topic is NOT unique to Wake County.
The NC REC manual is applicable in all 100 NC counties.
The NCAR Standard Offer to Purchase and Contract are used by REALTORS throughout North Carolina.
Actually, this thread is out of place in the Triangle Forum and should be in the NC state forum.
"Is pro-rating the tax bill at the time of sale done using a calendar year just for the purpose of convenience?"
There's the topic.
Again, those who protest should negotiate their contracts to sell and the line items they want as they want them.
This topic is NOT unique to Wake County.
The NC REC manual is applicable in all 100 NC counties.
The NCAR Standard Offer to Purchase and Contract are used by REALTORS throughout North Carolina.
Actually, this thread is out of place in the Triangle Forum and should be in the NC state forum.
As someone who doesn't buy and sell homes all the time or even more than a few times in a lifetime I wouldn't event think to look at that. I would ASSUME it was done fairly by just glancing at the verbiage. Contrary to popular belief I don't represent myself as a lawyer or realtor and so myself, and all the other sellers, rely on those professions to put their interests first. That is what they are paid to do, right?
Clearly every seller you have represented as well got the raw end of the deal. So, even relying on "professionals" doesn't even get you fair treatment.
This is so messed up. I'm actually quite thankful another RE professional has spoken up. You however seem to want to further dig your heels in on the issue and I'm not really sure why?
Soooo...
From helping a poster five years ago, this has devolved into the banality of just another mindless antiagent attack thread?
That's too bad.
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