For those of you that live in the Metro Atlanta Area, your tax bills will be mailed real soon. This can bring confusion for some Home Sellers who are about to close on their property.
Here are some tips to avoid issues at the closing!
- If Closing will take place before the due date of the tax bill, the Seller should not pay the tax bill and let the Closing Attorney pay the bill at Closing.
- If the Seller does not have an escrow account, send the bill to the attorney prior to closing.
- If the Seller has and escrow account, the Seller should notify the Lender not to pay taxes and that the loan will be paid in full prior to the due date.
- If the tax bill is due before closing, the Seller should make sure the bill is paid in plenty of time for the County to post the payment. Some Counties can take 30 days or more.
- If the Seller does not have an escrow account, the Seller should pay the bill as soon as it comes out and get a copy of the cleared check asap! The Seller will be reimbursed for the Buyer’s portion at Closing.
- If the Seller has an escrow account, the Seller should contact their lender and ask that is paid ASAP. If the lender pays the bill but it has not posted by the county at the time of Closing, the attorney will be required to pay the bill out of the Seller’s proceeds at Closing.
So, what happens if the Seller’s lender and the closing attorney both pay the tax bill out of the Seller’s funds? This is a great question! To find the answer please visit our original blog post about What Every Seller Should Know About Tax Bills And Selling Your Home!