Property tax liability – buying condo?
If I understand correctly, I am selling my home in July and I will be liable for pro-rated property taxes through the month based on my last year’s tax bill. (Wisconsin)
My question is: If I am buying a condo in July, from the developer, is he/she responsible for the same property taxes on the new condo? In other words, is the seller of property liable for the taxes until the time of sale?
Also, is this all handled at the closing??
Thanks,
All handled at closing.
Buyer is responsible from the day he takes title.
Seller to that point
Each pro rated
Developer is in most jurisdictions paying a master tax bill for the entire lot untill a CO is issued and a tax ide number is assigned for that lot; then the individual breakout going forward untill it is sold
All handled at closing.
Buyer is responsible from the day he takes title.
Seller to that point
Each pro rated
Developer is in most jurisdictions paying a master tax bill for the entire lot untill a CO is issued and a tax ide number is assigned for that lot; then the individual breakout going forward untill it is sold
References :
land title agent
You as the seller of your former home will owe taxes for the time you lived there and the developer will pay for the time they owned your new residence.
One thing you will need to change with the mortgage company if the amount of taxes that are placed in escrow monthly. The developer’s tax basis is for the land only and your basis will be on the land plus the condo that is now your new home.
You can ask the mortage company to recalculate your taxes based on the purchase price paid at closing for your residence.
References :
You will receive an amount of prorated tax from the developer from January 1, 2010 until the date of close. HOWEVER, insure that the standard contract language is changed according to the following. Standard WI real estate contracts base tax prorations on 2009’s property tax. If this happens to be a condo constructed in 2009, the assessed value and taxes will reflect what existed on January 1, 2009, and that value may well represent a vacant lot. If you do not change such language, the amount you receive on the prorata basis would be based upon said vacant lot taxes. INSURE that your agent include language which reflects expected 2010 taxes based upon the current assessed value of the condo. Otherwise, you will get a prorated amount sufficient to buy a warm case of soda.
References :