HUD-1 Settlement Statement?
Written By: admin on June 26, 2009
One Comment
Are property taxes for the current year due at the beginning or the end of the year? For example, if I close on a house on March 31st, the seller should pay me the prorated taxes for the first 3 months of the year and I will pay for the remaining 9 months at the end of the year. Is this right? What is line #108 (assessments) in the HUD-1 Settlement Statement? Why do I have to pay the seller the amount on this line? Has the seller already paid the property taxes for the current year?
I live in Houston, TX.
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sounds like the municipality/town/county collects property taxes in advance, not in arrears. The taxes have probably been pre-paid by the seller through the end of the current tax period.