Property Taxes- Buyer's and Seller's Contributions

[Calvin Ly]

Hi All,

Is the seller responsible for property taxes that increase after the sale/close? The tax appraised value doubled to close to 400K. Buyer is requesting that I pay the prorated increase in property taxes. My belief is that the house was not worth or would appraise for this high value had I not rehab the property to the level that I did. The other thing is the tax appraisal value is higher than what I had sold the property for. What are my options? or am I responsible for the prorated increase in property taxes? House is in Texas and sold mid 2015. 

[Greg H.]

In a closing in Texas, the title company had both parties sign a "Tax Proration Agreement" which basically states that the since Texas collects property taxes in arrears the title company relies on the previous years information to prorate the property taxes and it is up to the buyer and seller to settle any difference when the taxes come due

Most of the time neither party pays attention to the document but yes you as the seller are responsible for the difference as your obligation was to pay your portion of the taxes