For additional information, press here . We pay property taxes once a year in our community. In most realty transactions there are a series of credits and deductions to the seller which are outlined in the sale agreement. The selling price is a credit to you, the current mortgage balance is a debit if the loan is not being assumed, etc. For instance, if you have oil heat and the tank contains 200 gallons of oil, you would be entitled to a credit for the oil left behind.
Property taxes paid in advance are typically pro-rated and seen as a credit to the seller.
If the next tax bill is due in ten months and you have paid ahead, then you would get a credit equal to your prepayment. For details, speak with your broker or closing agent. Peter G. Miller, the publisher of Realty Times, is the author of six real estate books, the original creator and host of America Online's Real Estate Center, and a regular columnist with The Real Estate Professional. Click here for a printer-friendly version of this article. Click here to translate this page to another language.