Property Search with Taxes Due

[Ben Volkman]

When researching a property in Houston, I saw that there is taxes due when searching the Harris County website.  Does this have implications in the purchase?  Would I have to pay the taxes before purchase or after prior to taking ownership of the property?   Thanks!

[Account Closed]

In Texas, the only property taxes paid at closing are delinquent taxes.

Current year taxes are not due until the end of the year, but they are on the books for the owner as of January 1.

The current year tax bills do not come out until October.  They might be the same as the previous year amount, they might not.

So, at closing, current year taxes are prorated, using last year's numbers.

That means that if the property taxes for last year were $4,000 and the closing takes place on June 30, one-half of the anticipated tax liability is taken from the Seller's account and credited to the Buyer's account.

Then, at the end of the year, when the taxes are paid, the new owner pays them, using the $2,000 credit that he received at closing to cover the one-half year that he did not own the property.

Different taxing districts might do things a little different, but this is the general scheme.

I hope this helps.

Good Luck.

Michael Lantrip