Prorations and Estimated Taxes

April 9th, 2012

As we enter into the robust spring market, please remember that this is an estimated tax billing period until the June bills come out. Here are a few things to keep in mind:

•Signature will update tax information as close to the closing date as possible in an effort to get the most up-to-date information.

•If the property being transferred is newly constructed, the prorated amount on the HUD does not likely account for a fully assessed property.

•Remind buyers that their tax escrows will be recalculated based on an actual bill, once fully assessed.

•Urge buyers to connect with their new tax office to have tax bills directed appropriately.

•June tax bills may still be sent to the seller – should they receive it they are to forward it to the buyers right away.

•All parties sign the Compliance/Proration Agreement form at closing stating that any variation in the next tax bill is not the responsibility of any party other than buyer and seller.