How are Property Taxes Handled at a Closing in Florida?
October 16, 2019Property taxes are a fact of life. Property taxes are paid every year, with the money for property taxes held in escrow so the funds are available when it's time to pay property taxes. Florida currently ranks number 23 for the amount of property taxes collected. According to Taxrates.org, "the median property tax in Florida is $1,773.00 per year for a home worth the median value of $182,400.00." The report goes on to state that "counties in Florida collect an average of 0.97% of a property's assessed fair market value as property tax per year." In Florida, property taxes are assessed in November of the year in which they are due, but what happens when you close on a new home? How are property taxes handled at a closing in Florida.
Property Taxes at a Closing in FloridaIn Florida, property taxes are paid in arrears. As mentioned above, property taxes are not assessed until November of the year in which they are due. This means that if your closing takes place anywhere between January and the first week of November, the amount of the current years property taxes will not be known. For this reason, property taxes are based on the previous year's tax amount. Tax proration divides the property taxes between buyer and seller, with the buyer responsible for taxes up until the property is sold to the seller. Since the property taxes are based on the prior year, when the tax bill finally arrives, all parties involved should re-prorate the taxes to determine who owes what. During the closing process, all parties typically sign a re-proration agreement stating that property taxes will be re-calculated when the tax bill arrives. It is typical at closing to use the maximum discount allowed when prorating taxes.
Let Key Title & Escrow Handle the DetailsClosing on a property can be stressful, particularly for first-time homebuyers. Understanding all of the little details and how they need to come together is not for the faint of heart. So many little things have to be done to make a closing happen smoothly. One of these things out of place can delay or prevent a closing altogether. That's why a full-service closing company like Keu Title & Escrow is so important to the process. There's no need to let the stress of a real estate closing get in the way of the joy of buying a new home. Key Title & Escrow can sweat the small stuff for you.
Key Title & Escrow is a full-service real estate company that can help you understand all of the ins and outs of buying real estate. Our full line of real estate closing services means you can get everything done regarding your closing in one place, making the entire process smoother and less stressful. Our range of closing and escrow services include title searches, buyer and seller's insurance, settlement services, escrow closing services, title and lien searches, refinance transactions, and much more. We have the experience you need for the most professional closings in Florida. That's because we have been serving the real estate industry for more than 21 years, during which time we have built a solid reputation for providing the best, most efficient closings in the state of Florida.
At Key Title & Escrow, our number one goal is to provide our customers with a level of customer service that adheres to the highest set of standards. We guarantee you our professionalism, our reliability, and our commitment to our customers is what sets us apart from other title and escrow companies. We take pride in being a big enough company to handle all of your real estate needs in one place while still providing the personalized experience our customers deserve. We even go out of our way to make the process as convenient as possible by offering statewide closings and after-hours closings. This means we are here when you need us.
Key Title & Escrow always has the best interest of our customers at the heart of everything we do. Our goal is to always provide you with the best real estate closings in Florida. When you're ready to close, let us handle the details for you. To learn more about how we can make your closing the best experience possible, contact Key Title & Escrow today by calling locally at (305) 235-4571 or toll free at (800) 547-0006. We are the real estate closing professionals you need.
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