When you purchase a property mid year – who pays the property tax?
When you purchase a home mid year, the property taxes will not have been paid (the first property tax bill is not due until October). Property taxes are prorated to the close of escrow so the Settlement Statement will show a Seller credit to the Buyer for property taxes for the part of the year prior to close of escrow. This means that the new buyer will be responsible for the entire year’s property taxes when they come due.
