my husband and i are buying a home in ca with all cash. how do the taxes work. do we pay them at closing? are they prorated for the year? we are wondering what amount we can expect to add on to the purchase price of our home for taxes. thanks!
my husband and i are buying a home in ca with all cash. how do the taxes work. do we pay them at closing? are they prorated for the year? we are wondering what amount we can expect to add on to the purchase price of our home for taxes.
we are buying a home for 250,000 that is valued at 350,000 and expect to close in late march early april. the seller is paying all title and escrow costs- i don’t know if that matters or not
thanks!
You pay a pro-rated amount at closing – they will be included in the lawyer’s bill for closing costs. As to how much they will be, you can call city hall and find out how much they are on that property and do the pro-rate calculation yourself.
February 23rd, 2010 at 3:35 pm
You pay a pro-rated amount at closing – they will be included in the lawyer’s bill for closing costs. As to how much they will be, you can call city hall and find out how much they are on that property and do the pro-rate calculation yourself.
References :
February 23rd, 2010 at 4:07 pm
The property tax will be pro rated based upon date of sale vs. fiscal year (add in the math of rates divided by number of days). It’s that simple.
References :
February 23rd, 2010 at 4:14 pm
The title company or attorney who does the closing for you will pro-rate the property taxes in the same manner as they would if you had a mortgage. The only difference in a cash sale is that you won’t have to come up with impounds for property taxes and homeowners insurance.
The pro-ration may increase or decrease the amount of cash that you need to bring to the table, depending upon when the taxes are due.
References :