Lexington County just issued the 2018 tax bills and they did it on the next to the last day of the month!
As I mentioned in my post earlier today, the issuance of tax bills can have a tremendous affect on your real estate closings in Lexington County.
HOW IT AFFECTS THE SELLER:
Once the tax bill was issued it became a lien against the property. Since neither the seller nor the seller’s lender has had the opportunity to pay the tax bill, the seller will be charged the prorated share of the tax bill on the Closing Statement (this is done by the seller paying the full 2018 bill on the Closing Statement and simultaneously receiving a credit from the buyer from the day of closing through the end of the year). If the seller has escrowed taxes with their lender, the lender will refund any escrows after closing.
HOW IT AFFECTS THE BUYER:
The issuance of the tax bill can also greatly affect the amount of money the buyer brings to the closing. Prior to the tax bills being issued, the buyer would receive a tax credit from the seller for the seller’s portion of the taxes from January 1 through the date of closing. Now that the bill has been issued the buyer will not be getting the seller credit and the buyer will be charged their share of the taxes from closing through the end of the year. This could result in the buyer bringing more money to the closing table. Hopefully, the lender will also revise escrows downward so as not to hold as much tax money aside.
Therefore, even if the closing attorney has already issued you a lender approved Closing Statement you may find that the numbers have changed. Please prepare your clients for this situation.
Blair Cato is happy to announce that Kelli Morgan has joined Blair Cato as Director of Marketing in the Upstate. Kelli has worked in real estate for 20 years and remains committed to raising industry standards while providing excellent service with an unique and fun marketing twist.