Understanding Tax Proration

Understanding Tax Proration

Property taxes are paid current when a property is sold.  Find out how to calculate tax proration at the close of escrow.   Closing costs for the sale of real property will include property tax proration.  The purpose of a proration in a sale escrow is to fairly divide property expenses – such as taxes and homeowner’s association dues (HOAs) – between the buyer and seller to ensure each party is only paying for the days which s/he actually owns the property.   THE TAX YEAR Unlike the calendar year, the tax year begins on July 1 and ends on...Read more
What are Closing Costs in California?

What are Closing Costs in California?

Closing costs are fees paid through escrow for the transfer of real property.  Closing costs can include lender fees, escrow fees, title fees, title insurance, property taxes, agent commissions, recording fees, and more.  Many buyers and sellers are surprised at how expensive closing costs can be in some cases, and unfortunately, California has some of the highest closing costs in the country.  Find out how to estimate your closing costs when buying or selling a home in California.   Who Pays For What? Like most aspects of the California purchase agreement, delegation of closing costs is negotiable, however, there may...Read more