I have a residential closing tomorrow afternoon and just got a fax from the Seller’s attorney with his closing statement (which is somewhat standard) but he also included a page where he shows specifically how he calculated the real estate tax proration credit (often 105% or 110% of the last full year’s taxes). I like the gesture…it saves me some time and takes the guesswork out. It’s not a huge thing if I don’t see the math but then I’d have to pull a property tax bill, look at the contract, and get out a calculator.
Always striving for the perfect transaction…maybe tomorrow afternoon? 30 minutes with no snafoos?
In Florida and some other states, the parties sign a tax proration agreement at closing which provides that when the next tax bill is received, it will be prorated based upon the days the seller was the owner and if the estimated proration at closing was too low, the seller will pay the accurate, exact amount. Is anyone using tax proration agreements in Chicago? It allows the buyer to receive an accurate proration and not just an estimate of 110% of last year’s bill. It is the only way to have a truly accurate and fair proration.
Success?