Question about Property Taxes

[Ozy_Flame]

Hey guys, I bought a condo and took possession back on May 1. I just got my 2007 property tax bill, and I was wondering if the previous owner for the first four months of this year has to pay for those months that it was in his possession (by law or civil accordance)? Or is this a matter that had to have been sorted out with my lawyer who processed the sale back in April?

I probably should have clarified this before the sale went through, but it looks like the portion of tax that was covered by them in the original final sale price was only the supplementary tax levy, that being the increase in taxes between last year and this year. Do I have a right to ask for full payment of the first four months?

[guzzy]

your lawyer has already taken care of this. The person does have to pay for the year (I am not sure if it is fiscal or calendar). The lawyer has to calculate this with the city before the sale is complete. You cannot take possesion of the property until all of this is sorted. That is why you often get money back (not a lot) from a real estate lawyer a month or two after the transaction takes place.

[Alana Flames]

indeed. when I bought my condo in december I ended up having to pay an extra bit because the previous owner had paid ahead. the land title cannot change names until it's settled... but if by some fluke it really isn't paid up and you are getting billed for time they lived there, then yes you are entitled to ask them for the money. but remember that property taxes bill you for the upcoming year... by the time you get the bill, it should reflect what you owe in the year to come... not what you owed the previous year... I pay my taxes monthly through my mortgage, and you cna also set up monthly withdrawls(tipp) through the city... that way it's settled even before you get the bill and problems tend to get sorted out sooner... also if you pay through your mortgage, your bank will go to bat for you and do most of the work...

[fredr123]

Generally speaking, the previous owner is responsible for her share of the proprortionate share of the property taxes for the period of time that she was in possession of the home. You take the number of days in possession divided by the number of days in the year and multiply it by your actual tax bill for 2007 to figure out the previous owner's share.

In the normal course, these calculations are done before you take possession in order to determine the cash to close. Things can get a bit complicated in these calculations depending on whether the actual tax assessment is known, whether the previous owner was paying monthly on TIPP or if the entire bill is due in one lump sum at the end of June.

It's entirely possible that you were given a credit for the previous owner's share of this year's property taxes and you will be responsible to pay the entire bill when it comes due at the end of the month. Check with the lawyer (or most likely, his/her assistant) that worked on your deal.

[troutman]

Yes, you should see this accounted for in your Statement of Adjustments.

[Flames09]

Perfect timing for this, we just bought out home in mid-April, and we got a bill for the property tax to our new home (previous owners didn't pay anything), we assumed that we don't pay it, beacause it also wasn't under our name, and then we just got one a few days ago with our name on it. If the previous home owner doesn't pay up, am I legally allowed to take them to court? or is it there problem if they don't pay it?

[troutman]

If the previous owner did not pay taxes in 2007 (through TIPP) you should have got a credit for their share of 2007 in the Statement of Adjustments. You then pay the whole bill for 2007, because you got the vendor's share discounted off your purchase price.

Taxes are for the calendar year, but the bill goes out in June.

[fredr123]

nm