One thing all Texas property owners know is that they have to pay property taxes. What is less certain for some is when exactly they are required to pay them. Specifically, how long after buying a new home will your first tax payment become due?
The simple answer is that tax bills are mailed out on October 1st every year, and payment is due the following January, regardless of who owns the home and when it changed hands. The question is, if you buy a home halfway through the year, how much of the annual tax burden are you liable for?
In this case, the seller should pay the taxes accrued during the months when they still owned the property, while you, as the buyer, should take up the remainder of the burden. In this scenario, you only pay the taxes due after the closing. So, the seller is typically responsible for paying the amount of property taxes equal to the time before the closing date. For example, if the closing date is in August, the seller will be responsible for 8 months worth of taxes. Whereas the buyer would only be responsible for four months’ worth of taxes. If the seller has already paid the full years’ value of property taxes, you may be responsible for reimbursing those four months. The seller’s agreement, however, should disclose which party pays what.
However, there are still other factors to consider. It often depends on the specific deal signed between the seller and buyer. In some cases, the buyer might be required to pay all the taxes for the year or another agreed-upon amount before closing the deal. In others, the seller might offer to pay the taxes to sweeten the deal and expedite the sale. Additionally, the realtor will also need to determine if the property has an outstanding tax lien. Once determined, the exact amount the buyers and sellers each owe can be calculated.
If you go into the purchase of your new property uncertain of the tax requirements, you may find yourself with an overdue account by the beginning of the next year, accruing penalties and interest. It is then advisable to get in touch with a property tax lender to help you alleviate the burden. You can immediately settle your debt to the tax authorities and pay the lender back on a schedule that suits your budget.
American Finance & Investment Co., Inc. (AFIC) is an OCCC-registered property tax lender. We offer our clients an affordable, hassle-free way to manage their Texas property taxes. We can ensure that your account with the local government tax office is paid in full and will work out a manageable repayment plan for you. AFIC can provide you with an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your delinquent taxes and offer you the following benefits:
We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, or if you need any additional advice on the requirements of your local tax authorities and the details of your property taxes, please contact our experienced team at AFIC today.
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YOUR TAX OFFICE MAY OFFER DELINQUENT TAX INSTALLMENT PLANS THAT MAY BE LESS COSTLY TO YOU. YOU CAN REQUEST INFORMATION ABOUT THE AVAILABILITY OF THESE PLANS FROM THE TAX OFFICE.
If you are over 64 or disabled, don’t get a property tax loan, contact your tax office about a deferral.
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