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Updated 8 months ago on . Most recent reply

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property tax due while my property is for sale

Posted

I am just curious. I am listing one of my properties for sale. Next week my 2nd installment of property taxes are due. Is there potential for a lien or some other penalties that I may face if I sell after my property tax is due without paying my 2nd installment?

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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied

You should definately pay it. At closing the taxes will be calculated per day and then divided by days remaining in the year at closing. If you’ve paid more than your share you’ll get a refund at closing. If you’ve paid less you’ll have to pay them at closing. 

You won’t be able to sell. (At least easily) with any taxes outstanding. Best case they take the money and any penalties from you at closing. But if they can’t calculate them or get an exact answer you closing may be cancelled/delayed. 

TLDR: pay them before they are due. It will all be worked out at closing which can’t happen without taxes being current. 

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