Where To Find Real Estate Taxes Paid On Closing Documents
When buying or selling a property, one of the most important documents involved in the transaction is the closing document. This document includes information about the sale, including the purchase price, any liens or mortgages on the property, and the real estate taxes paid. Real estate taxes are a crucial part of the closing document, and it is essential to know where to find this information.
What Are Real Estate Taxes?
Real estate taxes, also known as property taxes, are taxes paid on real property, such as land and buildings. These taxes are typically based on the value of the property and are used to fund local government services, such as schools, police, and fire departments. The amount of real estate taxes paid can vary depending on the location of the property and the local tax rate.
Where To Find Real Estate Taxes Paid On Closing Documents?
The real estate taxes paid on a property can usually be found on the closing document. This information is typically included in the section labeled "prorations" or "adjustments." The prorations section will show how much of the real estate taxes were paid by the seller and how much will be paid by the buyer. This section will also show the period for which the taxes were paid, such as the current year or the previous year.
If the closing document does not include information about real estate taxes, you can contact the local tax assessor's office to obtain this information. The tax assessor's office will have records of the property's tax history, including the amount of taxes paid and any outstanding taxes.
Why Is It Important To Know Real Estate Taxes Paid?
Knowing the real estate taxes paid on a property is important for several reasons. First, it can help you determine the true cost of owning the property, as real estate taxes can be a significant expense. Second, it can help you avoid any surprises, such as unpaid taxes, that could affect your ownership of the property. Finally, it can help you plan for future expenses, such as property tax increases.
Conclusion
Real estate taxes are an essential part of any property transaction, and it is crucial to know where to find this information on the closing document. By understanding the real estate taxes paid on a property, you can make informed decisions about the true cost of owning the property and plan for future expenses.