Taxes, as well as buying and selling real estate, can be very overwhelming. Real Estate Property Taxes are included in every Escrow transaction and can be confusing because it’s always paid and prorated differently depending on the time of year. EscrowOne, Inc. will make every effort to give you an understanding of the Property Tax due dates, delinquent dates as well as the prorations credited through Escrow.
DUE DATES:
Property Taxes are due in two installments/payments. Each billing cycle starts at the end of one year and ends in the spring of the next year. For example:
1st Half Taxes
DELINQUENT : Dec. 10th- PAYMENT COVERS:
- July 1st – Dec. 31st
2nd Half Taxes
DELINQUENT : April 10th- PAYMENT COVERS:
- Jan. 1st – June 30th
While in Escrow, Taxes are usually paid current and then prorated so the seller and buyer are only paying property tax for the time-period they own the property. The Buyer’s new lender is usually the one who will determine if taxes must be paid through the file, or if they will collect enough at the closing, to pay themselves, when they are due.
Below is a tax proration chart to help you determine what may be required of you during your upcoming transaction.
| IF IT IS | THEN THE PRORATION WOULD BE |
| Jan. 1st through Jan. 31st | Prorate from Jan. 1st to the Close of Escrow debiting the seller and crediting the buyer. |
| Feb. 1st through April 9th | The seller would pay the 2nd Installment. You would Prorate from the Close of Escrow to July 1st, debiting the buyer and crediting the seller. |
| April 10th through June 30th | Seller would pay 2nd Installment and any delinquencies (if due) and you would prorate from the Close of Escrow to July 1st, debiting the buyer and crediting the seller. |
| July 1st through Oct. 31st | Prorate from July 1st to the Close of Escrow debiting the seller and crediting the buyer. |
| Nov. 1st through Dec. 9th | Pay the 1st Installment of the new Fiscal Tax Year. Prorate from the Close of Escrow to Jan 1st debiting the buyer and crediting the seller. The Seller would pay any delinquent penalties and assessments. |
| Dec. 10 th through Dec. 31st | Prorate from the Close of Escrow to Jan. 1st debiting the buyer and crediting the seller. |
Keep in mind that even though not yet due, the new lender can require that the next installment of taxes be paid. If that occurs, the prorations would be adjusted to reflect the new paid to date.
EscrowOne is always happy to answer any questions and explain your transaction to your full contentment, providing you with confidence that you made the right choice with EscrowOne, Inc.
ESCROWONE, INC. – LANCASTER
LICENSE # 963-2613
43832 20th Street West, Ste. 102, Lancaster, CA 93534
Ph: 661-945-6991 Fax: 866-304-1745
Or you can Email:
Donna Magoch at Donna@escrowone.com
or
Maria Vargas at Maria@escrowone.com
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LICENSE # 863-1653
44200 Town Center Way, Ste 102, Palm Desert, CA 92260
Ph: 760-836-1881 Fax: 760-836-1887
Call or Email:
Priscilla Garcia at Priscilla@escrowone.com
or
Traci Keller at Traci@escrowone.com
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LICENSE # 96DBO-48775
10660 Scripps Ranch Blvd., Ste. 102, San Diego, CA 92131
Ph: 858-635-5177 Fax: 858-549-7124
Email: Barbara@escrowone.com
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LICENSE # 96DBO-46186
700 La Terraza, Blvd., Ste. 100-B, Escondido, CA 92025
Ph: 760.740.6500 Fax: 760.740.6501
Email: Helga@escrowone.com