At closing the buyer and the seller usually sign a Proration Agreement in which they agree to make up the difference among themselves. In many areas property taxes rise each year and the exact amount of the next bill may not be known. That's why the seller is usually asked to pay a little extra in real estate taxes above the daily proration fee, about 110% of the daily fee to cover any increases.
It is better to agree upon this before your escrow closes. Once escrow is closed, it would be difficult to go back to the seller and ask him to pay you for any additional property taxes. You wouldn't appreciate it if the seller comes back to you and ask for a refund if the property taxes were to go down.
One more important thing that should be paid attention to is that tax assessment dates vary from state to state. In California, for example, taxes become an outstanding debt against property on the first day of March, even though they are not payable until considerably later. The full fiscal year for property taxes in California runs from July 1st to June 30th, and it is divided into two halves so that payments may be made in two installments. In Illinois, as another example, property tax payment dates vary. Larger counties typically schedule them for March 1st and September 1st, and smaller counties schedule them for June 1st and September 1st.
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