Property Tax on new development in Irvine

NEW -> Contingent Buyer Assistance Program
R

rickr

New member
If we buy a new home that is completed in December and we move in prior to the begining of the year? Are we responsible for paying property taxes/MR for the prior 5 months? The Agent at Casero told us that is part of the closing cost. I think that is BS and the builder should pay for it. Do they just try to ream people in every direction?

Thanks
 
rickr said:
If we buy a new home that is completed in December and we move in prior to the begining of the year? Are we responsible for paying property taxes/MR for the prior 5 months? The Agent at Casero told us that is part of the closing cost. I think that is BS and the builder should pay for it. Do they just try to ream people in every direction?

Thanks
Click to expand...

I doubt it.  There are two ways this can can play out.  You can be responsible for the full 6 months and the builder will credit you 5 months during escrow or you will just get charged 1 month of property tax during escrow.  At the end of the day you are only responsible for 1 month worth of property tax.
 
rickr said:
If we buy a new home that is completed in December and we move in prior to the begining of the year? Are we responsible for paying property taxes/MR for the prior 5 months? The Agent at Casero told us that is part of the closing cost. I think that is BS and the builder should pay for it. Do they just try to ream people in every direction?

Thanks
Click to expand...

Very simply, you pay property tax for the period of when you own the home, beginning the date that it records in your name, and not one single day before. Likewise, when you sell, you will stop paying once it is recorded in the new owner's name. 

Anything that you have prepaid to the assessor's office will be credited back to you. 
Anything that you should have paid, but didn't, will get billed to you through escrow.

:-)  Either way, congratulations and good luck, - Scott
 
rickr said:
If we buy a new home that is completed in December and we move in prior to the begining of the year? Are we responsible for paying property taxes/MR for the prior 5 months? The Agent at Casero told us that is part of the closing cost. I think that is BS and the builder should pay for it. Do they just try to ream people in every direction?

Thanks
Click to expand...
As IR stated, you are only responsible for the property tax and Mello Roos from the date that you close on.  As with re-sale properties, the property tax is pro-rated in escrow.  If you close on a home in December, you will have a small charge for the property tax from the date you close to 12/31/10.  If you close on a home after the year, you'll get a credit for the property taxes and for a closing after 2/1/11 the escrow will send the 2nd half payment in which means you have a net charge (payment less seller pro-ration credit).  The property tax on a new home will only be for the land value so you'll get a supplemental bill for the building portion next year.
 
You must log in or register to reply here.
Back
Top