HUD-1 Settlement Statement?
Answers:
sounds like the municipality/town/county collects property taxes in advance, not in arrears. The taxes have probably been pre-paid by the seller through the end of the current tax period.
Property taxes are usually due quarterly. The seller already has paid the first quarter and you will pay a pro-rated amount, from when you closed to the new quarter. Also usually your lender will have a reserve account that has the funds to pay your preorpty taxes for you so they are never late. Check with your lender. As for the assessment on the HUD-1, this is usually an assessment that the community makes you pay that is seperate form the HOA. Ask your agent what the assessment is, if any?
I hope that helped a little.
I am a Las Vegas Realtor. Lease let me know if you have any other questions. I'll do my best to answer.
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Some taxes run on the calendar year, others on a fiscal year. If they are by calendar year the Seller has already paid them for 2007 and you would need to reimburse them for the amount after closing.
Taxes are done differently depending on what area you live in so your best bet is to ask your REALTOR or the closing attorney.
Kenny, it depends on where you are in the country. in NY county taxes are due in the beginning of the year but school taxes are due in Sept. You are correct in your example if the taxes in your area are due at the end of the year. These are just credits on paper though, not actual cash paid to you. The HUD-1 is a bunch of credit and debits. You just pay the bottom line if it totals out that you need to bring in money.
You will reimburse the seller for any taxes they paid that covers the time after the closing, but they will pay the taxes for up to the time you close. Assessments are like taxes but are for community improvements ususally (parks, sidewalks etc).
Ask your Realtor if the taxes for the current year have been paid on your property. You can ask your closing agent for an estimated HUD-1 for your closing ahead of time, so that you can prepare for what you'll be responsible for (and not be surprised and give u a chance to ask specific questions) Or your Realtor should be able to help you with this.
In Florida you can pay from November to March of the following year. The seller gives you a credit for the portion of the year that they used. So on your HUD the section may have a heading of Items Unpaid By Seller. This would be credit to you. Try calculating it - it might be a reduction in the amount you brought to closing.
Most likely the seller has not paid this years taxes.
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