Purchase of rental property to be used as primary residence

[Steve Dove]

I've got an interesting scenario here. A relative of mine is purchasing a primary residence through a short sale transaction. The property is owned by an investor who rented the home out for several years. The investor has paid the property taxes through July of next year, and the property is taxed as non-homestead. My relative is being told that he must pay the pro-rated taxes through July, at closing, at the non-homestead rate - even though this will be used as his primary residence. Is this typical? It seems as though the property should be assessed with the homestead exemption for him, and the following should occur.

1. The investor is credited the pro-rated amount, by the township, at the non-homestead rate.

2. My relative would pay the pro-rated taxes, though July, with the homestead exemption.

Thoughts?